Principle of Microeconomics
Econ 2106
Study Guide and Practice Questions of Final Exam
Instructor: Yaqin Liu
Final Exam Date: December 4, 10:45 am –
... [Show More] 13:15 pm
***Final Exam will use scantrons for part of the multiple-choice questions. Scantrons will
be provided, please bring 2-B pencils and erasers for your convenience.
1. Exam format
Final exam contains multiple choices and long answers. Long answers constitute calculation,
drawing graphs and providing clear explanations to show our understanding.
2. Study guide
Exam Two covers all chapters listed on the syllabus.
First, make sure you can do all problems from Exam 1 &2, especially the long answer questions.
Second, make sure you know the following in chapters post exam 1 &2.
Concepts and Calculations: Cost and Production, Competitive and non-competitive markets. See
examples in practice questions below.
3. Practice questions
Part one: multiple choices
1. Which of the following statements is correct?
A) A change in demand is a movement along the demand curve, and a change in
quantity demanded is a shift of the demand curve.
B) Both a change in quantity demanded and a change in demand are movements along
the demand curve, only in different directions.
C) Both a change in quantity demanded and a change in demand are shifts of the
demand curve, only in different directions.
D) A change in quantity demanded is a movement along the demand curve, and a
change in demand is a shift of the demand curve.
2. Canned tuna is an inferior good. If students' incomes at your college increase, the effect
on canned tuna would be:
A) an increase in the demand.
B) an increase in the quantity demanded.
C) a decrease in the demand.
D) no change in the demand.
2
3. If the price elasticity of demand is calculated to be -2, then demand is:
A) Relatively inelastic.
B) Relatively elastic.
C) Unitary elastic.
D) Perfectly inelastic.
4. The cross-price elasticity of demand of substitute goods is:
A) between –1 and 0.
B) less than 0.
C) equal to 0.
D) greater than 0.
5. The income elasticity of demand of an inferior good:
A) is less than 0.
B) is equal to 0.
C) is greater than 0.
D) cannot be determined.
6. The short-run price elasticity of supply of crude oil is ________ the long-run price
elasticity of supply of crude oil.
A) less than
B) greater than
C) equal to
D) not comparable to [Show Less]