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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 facts 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 Work of Strive (cupcakes per day)

Value of the Ultimate Work 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 ultimate work of strive?

  1. 120 cupcakes
  2. 140 cupcakes
  3. 160 cupcakes
  4. 180 cupcakes
  5. Refer to Table 1. What is the fourth worker's ultimate work of strive?
    1. 120 cupcakes
    2. 140 cupcakes
    3. 160 cupcakes
    4. 180 cupcakes

3.  Refer to Table 1. What is the fifth worker's ultimate work of strive?

a. 120 cupcakes

b. 140 cupcakes

c.  160 cupcakes

d.  180 cupcakes

4.  Refer to Table 1. What is the sixth worker's ultimate work of strive?

a.  100 cupcakes

b.  120 cupcakes

c.  140 cupcakes

d.  160 cupcakes

5.  Refer to Table 1 What is the treasure of the ultimate work of the highest worker?

a.  $200

b.  $400

c.  $500

d.  $700

6.  Refer to Table 1. What is the treasure of the ultimate work of the second worker? . 

a.  $180

b.  $360

c.  $450

d.  $720

7.  Refer to Table 1. What is the treasure of the ultimate work of the fifth worker?

a.  $120

b.  $240

c.  $300

d.  $1,600

8.  Refer to Table 1. The ultimate work of strive begins to contract 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 ultimate benefit-service of the fourth worker?

a.  $280

b.  $25

c.  –$5

d.  –$45

10.  Refer to Table 1. What is the ultimate benefit-service of the sixth worker?

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

12.  Refer to Table 1. Assuming MadeFromScratch is a competitive, benefit-service-maximizing strong, how abundant workers procure the strong employ?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

13.  Refer to Table 1. Assume that MadeFromScratch is a competitive, benefit-service-maximizing strong. If the negotiate figure of cupcakes increases from $2.00 to $2.50, how abundant workers would the strong then employ?

a. 2 workers

b. 3 workers

c. 4 workers

d. 5 workers

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

result past cupcakes than they could anteriorly. Accordingly of this veer, the strong’s

a. call-for for strive shifts equitable.

b. call-for for strive shifts left.

c. minister of strive shifts equitable.

d. minister of strive shifts left.

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

a. call-for for strive shifts equitable.

b. call-for for strive shifts left.

c. minister of strive shifts equitable.

d. minister of strive shifts left.

16. Which of the subjoined is most slight an subordinate amiable-natured?

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

17. A amiable-natured-natured is an subordinate amiable-natured-natured if the consumer buys past of it when

           a. his proceeds rises.

            b. the figure of the amiable-natured-natured falls.

            c. the figure of a relocate amiable-natured-natured rises.

            d. his proceeds falls.

18. Pepsi and pizza are regular amiable-natureds. When the figure of pizza rises, the adherence issue causes Pepsi to be relatively

            a.past high-priced, so the consumer buys past Pepsi.

            b.past high-priced, so the consumer buys hither Pepsi.

            c.hither high-priced, so the consumer buys past Pepsi.

            d.hither high-priced, so the consumer buys hither 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 amiable-natured-natured is one for which the aggregate call-fored rises as the figure rises accordingly the proceeds issue

  1. reinforces the adherence issue.
  2. reinforces and is superior than the adherence issue.
  3. counteracts but is smaller than the adherence issue.
  4. counteracts and is superior than the adherence issue.

21.  How are the subjoined three questions detaild: 1) Do all call-for flexions prosper downward? 2) How do stipend feign strive minister? 3) How do attention rates feign common careful?

  1. They all detail to macroeconomics.
  2. They all detail to monetary economics.
  3. They all detail to the speculation of consumer excellent.
  4. They are not detaild to each other in any way.

22. Just as the speculation of the competitive strong provides a past consummate intellect of minister, the speculation of consumer excellent provides a past consummate intellect of

            a.demand.

            b.profits.

            c.genesis possibility frontiers.

            d.wages.

23. The speculation of consumer excellent most closely examines which of the subjoined Ten Principles of Economics?

            a.People aspect trade-offs.

            b.Governments can casually correct negotiate outcomes.

            c.Trade can produce everyone ameliorate off.

            d.Markets are usually a amiable-natured-natured way to arrange economic disposition.

24.  The speculation of consumer excellent provides the institution for intellect the

            a.constituency of a strong.

            b.profitability of a strong.

            c.call-for for a strong's work.

            d.minister of a strong's work.

25.  The speculation of consumer excellent

            a.underlies the concept of the call-for for a detail amiable-natured.

            b.underlies the concept of the minister of a detail amiable-natured.

            c.ignores, for the cause of artlessness, the trade-offs that consumers aspect.

            d.can be applied to abundant questions environing common decisions, but it cannot be                                     applied to questions regarding stipend and strive minister.

II

FIFTY POINTS

BOBBY'S BOTTLE SHOP, LLC

BBS produces and sells bottles in a totally competitive negotiate at a figure of $.50 for each bottle.  BBS employs its strive in a totally competitive negotiate  at an hourly wage of $20.  The similarity among the aggregate of strive employd and the aggregate of output resultd 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 forfeiture facts in the equitable locate on the aloft grid.

2.         What is the efficient strive aggregate?  Why?

3.         Graph the makeweight minister and call-for for strive; letter all flexions and                           the             axes.