01:220:102 Study Guide - Midterm Guide: Peanut Butter, Economic Surplus, Margarine

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Published on 15 Oct 2018
School
Rutgers University
Department
Economic
Course
01:220:102
Professor
Version 1 Page 1
Name: ___________________________________ Date: ______________
1.
An attorney supplies 40 hours of work per week when her fee is $100 per hour but
supplies 60 hours of work per week when her fee rises to $120 per hour. Using the
midpoint formula, her elasticity of supply is equal to:
A)
0.8.
B)
0.45.
C)
1.
D)
2.2.
Use the following to answer question 2:
Figure: Producer Surplus
2.
(Figure: Producer Surplus) Look at the figure Producer Surplus. Total producer surplus
is ________ when the price is $40.
A)
$80
B)
$40
C)
$85
D)
$60
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Use the following to answer question 3:
Figure: Consumer and Producer Surplus
3.
(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer
Surplus. If the price is held above equilibrium in this market, compared with the
equilibrium price, consumer surplus ________ and total surplus ________.
A)
decreases; stays the same
B)
increases; stays the same
C)
decreases; decreases
D)
increases; decreases
4.
If they produce only hamburgers, in a single day Sarah can produce 10 hamburgers
while Abe can produce 5 hamburgers. If they make milkshakes only, in a single day
Sarah can produce 10 milkshakes while Abe can produce 4 milkshakes. We know that:
A)
Abe has an absolute advantage and a comparative advantage in making
hamburgers.
B)
Sarah has an absolute advantage and a comparative advantage in making
hamburgers.
C)
Abe has an absolute advantage and a comparative advantage in making milkshakes.
D)
Sarah has an absolute advantage and a comparative advantage in making
milkshakes.
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Use the following to answer question 5:
Figure: Consumer and Capital Goods
5.
(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods.
The movement from curve 1 to curve 2 indicates:
A)
a shift of the production possibility frontier toward producing fewer goods.
B)
a growing ability of the economy to produce capital and consumer goods.
C)
going from unemployment to full employment.
D)
a decrease in the factors of production.
6.
Which will not increase demand for desktop computers?
A)
the price of notebook computers increasing
B)
Dell Computers going out of business
C)
an increase in the incomes of computer users
D)
cool new computer games
7.
A statement that says that the minimum wage should be increased is a:
A)
normative statement.
B)
ìother things equalî assumption.
C)
scientific conclusion based on marginal analysis.
D)
positive statement.
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Document Summary

Name: ___________________________________ date: _____________: an attorney supplies 40 hours of work per week when her fee is per hour but supplies 60 hours of work per week when her fee rises to per hour. Using the midpoint formula, her elasticity of supply is equal to: 0. 8, 0. 45, 1, 2. 2. Figure: producer surplus: (figure: producer surplus) look at the figure producer surplus. Total producer surplus is ________ when the price is : , , , . Figure: consumer and producer surplus: (figure: consumer and producer surplus) look at the figure consumer and producer. If they make milkshakes only, in a single day. Sarah can produce 10 milkshakes while abe can produce 4 milkshakes. Figure: consumer and capital goods: (figure: consumer and capital goods) look at the figure consumer and capital goods. Other things equal assumption: normative statement, scientific conclusion based on marginal analysis, positive statement.