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MICRO ECONOMICS 202 FALL 2014  -- FINAL EXAM

100 POINTS

I

MULTIPLE CHOICE --  TWO POINTS EACH

Table 1

Consider the subjoined daily genesis axioms for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day.

Labor (calculate of workers)

Quantity (cupcakes per day)

Marginal Fruit of Drudge (cupcakes per day)

Value of the Final Fruit of Labor

Wage (per day)

Marginal Profit

0

0

$325

1

200

$325

2

380

$325

3

540

$325

4

680

$325

5

800

$325

6

900

$325

1.   Refer to Table 1. What is the third worker's final fruit of drudge?

  1. 120 cupcakes
  2. 140 cupcakes
  3. 160 cupcakes
  4. 180 cupcakes
  5. Refer to Table 1. What is the fourth worker's final fruit of drudge?
    1. 120 cupcakes
    2. 140 cupcakes
    3. 160 cupcakes
    4. 180 cupcakes

3.  Refer to Table 1. What is the fifth worker's final fruit of drudge?

a. 120 cupcakes

b. 140 cupcakes

c.  160 cupcakes

d.  180 cupcakes

4.  Refer to Table 1. What is the sixth worker's final fruit of drudge?

a.  100 cupcakes

b.  120 cupcakes

c.  140 cupcakes

d.  160 cupcakes

5.  Refer to Table 1 What is the prize of the final fruit of the primitive worker?

a.  $200

b.  $400

c.  $500

d.  $700

6.  Refer to Table 1. What is the prize of the final fruit of the second worker? . 

a.  $180

b.  $360

c.  $450

d.  $720

7.  Refer to Table 1. What is the prize of the final fruit of the fifth worker?

a.  $120

b.  $240

c.  $300

d.  $1,600

8.  Refer to Table 1. The final fruit of drudge begins to retrench delay the addition

of which worker?

a. the 1st worker

b. the 2nd worker

c. the 3rd worker

d. the 4th worker

9.  Refer to Table 1. What is the final avail of the fourth worker?

a.  $280

b.  $25

c.  –$5

d.  –$45

10.  Refer to Table 1. What is the final avail of the sixth worker?

  1. $100
  2. −$50
  3. −$75
  4. −$125

12.  Refer to Table 1. Assuming MadeFromScratch is a competitive, avail-maximizing unshaken, how divers workers conciliate the unshaken rent?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

13.  Refer to Table 1. Assume that MadeFromScratch is a competitive, avail-maximizing unshaken. If the trade appraisement of cupcakes increases from $2.00 to $2.50, how divers workers would the unshaken then rent?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

14.  Refer to Table 1. Suppose that there is a technological remove that allows MadeFromScratch employees  to

yield over cupcakes than they could anteriorly. Accordingly of this veer, the unshaken’s

a. ask-for for drudge shifts lawful.

b. ask-for for drudge shifts left.

c. contribute of drudge shifts lawful.

d. contribute of drudge shifts left.

15.  Refer to Table 1. Suppose that the unshaken suffers a mislaying of some of their technology such as the stealing of their industrial mixers. After the stealing, MadeFromScratch employees yield fewer cupcakes than they could anteriorly accordingly they must mix the cupcake pound by index rather than using the high-speed mixers. Accordingly of this veer, the unshaken’s

a. ask-for for drudge shifts lawful.

b. ask-for for drudge shifts left.

c. contribute of drudge shifts lawful.

d. contribute of drudge shifts left.

16. Which of the subjoined is most slight an minor cheerful-tempered?

  1. an ancestral car
  2. gasoline
  3. a bus ticket
  4. an airline ticket

17. A cheerful-tempered-tempered is an minor cheerful-tempered-tempered if the consumer buys over of it when

           a. his pay rises.

            b. the appraisement of the cheerful-tempered-tempered falls.

            c. the appraisement of a commute cheerful-tempered-tempered rises.

            d. his pay falls.

18. Pepsi and pizza are natural cheerful-tempereds. When the appraisement of pizza rises, the superabundance chattels causes Pepsi to be relatively

            a.over valuable, so the consumer buys over Pepsi.

            b.over valuable, so the consumer buys close Pepsi.

            c.close valuable, so the consumer buys over Pepsi.

            d.close valuable, so the consumer buys close Pepsi.

19.  You can hold of an composure flexion as an

            a.equal-cost flexion.

            b.equal-marginal-cost flexion.

            c.equal-utility flexion.

            d.equal-marginal-utility flexion.

20.  A Giffen cheerful-tempered-tempered is one for which the size ask-fored rises as the appraisement rises accordingly the pay chattels

  1. reinforces the superabundance chattels.
  2. reinforces and is main than the superabundance chattels.
  3. counteracts but is smaller than the superabundance chattels.
  4. counteracts and is main than the superabundance chattels.

21.  How are the subjoined three questions described: 1) Do all ask-for flexions expand downward? 2) How do compensation seek drudge contribute? 3) How do cause rates seek accustomed reluctant?

  1. They all describe to macroeconomics.
  2. They all describe to monetary economics.
  3. They all describe to the supposition of consumer dainty.
  4. They are not described to each other in any way.

22. Just as the supposition of the competitive unshaken provides a over accomplished brains of contribute, the supposition of consumer dainty provides a over accomplished brains of

            a.demand.

            b.profits.

            c.genesis possibility frontiers.

            d.wages.

23. The supposition of consumer dainty most air-tight examines which of the subjoined Ten Principles of Economics?

            a.People visage trade-offs.

            b.Governments can casually rectify trade outcomes.

            c.Trade can mould everyone amend off.

            d.Markets are usually a cheerful-tempered-tempered way to constitute economic earnestness.

24.  The supposition of consumer dainty provides the groundwork for brains the

            a.constitution of a unshaken.

            b.profitability of a unshaken.

            c.ask-for for a unshaken's fruit.

            d.contribute of a unshaken's fruit.

25.  The supposition of consumer dainty

            a.underlies the concept of the ask-for for a detail cheerful-tempered.

            b.underlies the concept of the contribute of a detail cheerful-tempered.

            c.ignores, for the reason of frankness, the trade-offs that consumers visage.

            d.can be applied to divers questions about accustomed decisions, but it cannot be                                     applied to questions about compensation and drudge contribute.

II

FIFTY POINTS

BOBBY'S BOTTLE SHOP, LLC

BBS moulds and sells bottles in a exactly competitive trade at a appraisement of $.50 for each bottle.  BBS rents its drudge in a exactly competitive trade  at an hourly wage of $20.  The interconnection betwixt the size of drudge rentd and the muchness of output yieldd each hour is presented below:

LABOR             Q            MPL               VMPL                         WAGE              MARGINAL

                                    (= P X MPL)                                              PROFIT

0                         0                   -----                  -------                           --------

1                        90                 90                    $45                             $20                 $25

2                        ___               ___                 ____                           20                    ____

3                        ___               ___                 ____                           20                    ____

4                       ___                ___                 ____                           20                    ____

5                       ___                ___                 ____                           20                    ____

6                       ___                ___                 ____                           20                    ____

7                       ___                ____               ____                           20                    ____

8.                      ___                ____               ___                             20                    ____

1.         Enter the mislaying axioms in the suited attribute on the aloft grid.

2.         What is the causative drudge size?  Why?

3.         Graph the makeweight contribute and ask-for for drudge; delineate all flexions and                           the             axes.