# Econ1101 Earlier Exam

THE UNIVERSITY OF NEW SOUTHERN WALES SCHOOL OF ECONOMICS SESSION one particular, 2008 ECONllOl MICROECONOMICS My spouse and i FINAL EVALUATION TIME ALLOWED - 2HOURS

THIS CONVENTIONAL PAPER IS WORTH 60 per cent OF THE TOTAL SUBJECT DRAW

This examination paper includes two parts - Part A and Part M Part A consists of 20 multiple choice questions every single worth one (1) indicate. Answer all the questions in Part A on the solution sheet provided, using pencil only: (a) Print your student number, name and initials inside the space provided and tag the appropriate containers below your student number, name and initials. (b) For each query, mark the proper response (a), (b), (c), or (cl). There is only one correct respond to each question in Part A.

Part M consists of four (4) essay-type questions, every worth TWENTY (20) represents. Answer only TWO (2) questions via Part N. ANSWER EVERY SINGLE PART M QUESTION IN A SEPARATE EXAM BOOKLET Answers to queries in Part N must be drafted in ink. Pencil can be used in answers to Part B pertaining to drawing, sketching or visual work only.

This question paper can be retained by candidate

PART A

It is worth twenty marks Mark your response on Response Sheet supplied Question one particular If

Result Average Total Cost Total Fixed Expense Marginal Expense

= four hundred units = \$70 sama dengan \$12000 sama dengan \$90

then

(a) \$20 (b) \$40 (c) 50 dollars

Average Variable Cost means:

(d) \$160

Question two

In an imperfectly competitive marketplace, in which a company has some market power: (a) The demand contour faced by a typical company is correctly elastic with the current market price (b) Minor revenue is definitely greater than average revenue at all levels of production. (c) The demand curve experienced by the standard firm is significantly less flexible for price increases than for value decreases. (d) For the normal firm, price are greater than little cost with the profit-maximising result level.

Query 3

On the level of production at which growing process average expense is minimized: (a) Marginal price equals common cost. (b) Marginal value is decreasing. (c) Average value is less than little cost. (d) Average value is less than average variable cost.

2

Query 4

Which of the subsequent has the " non excludability" characteristic that defines a pure general public good? (a) A local authorities car park. (b) Suburban street lighting. (c) A cost road. (d) Primary school education.

Question 5

Which in turn of the subsequent statements is true? (a) Money maximising monopolist will always collection price and output by a level in which demand is price stretchy. (b) Money maximising monopolist always creates where Average Revenue equals Average Expense (c) A profit maximising monopolist will, in long run equilibrium, always use a scale of plant that minimises Long term Average Costs. (d) A profit maximising monopolist will always develop where Minor Cost is higher than Price.

Problem 6 Evaluation of a monetary investment opportunity for a vendor bank provides the following estimations of conceivable profit levels and related probabilities; Profit \$lAm \$0. 7m Probability 0. 3 0. 6th 0. 1

-\$OAm

The Expected Worth of revenue for this chance is: (a) \$0. 70m (b) \$0. 80m (c) \$0. 84m (d) \$0. 88m

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Question six Big& Sturdy PIL makes frozen meats pies in packets of 20. Big& Beefy provides the following

costs of development:

Packets Total Cost

(per hour) 0 1 two

(\$ per hour) 85

96

tips 107 118 140 172

3

5 5

six

(only accomplished packets are produced)

In an output amount of 5 packets per hour, Big& Beefy's average variable cost is: (a) \$10,50 (b) \$18 (c) \$22 (d) \$28

Question 8

Refer to the data in Question 7 At an result level of a couple of packets each hour, Big& Beefy's average fixed cost is: (a) \$2. 55 (b) \$3

(c) \$45 (d) 50 dollars. 50

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Question on the lookout for

Vesty PIL produces natural cotton shirts. Vesty is a price taker and must make a decision on its on an hourly basis production level. The costs of production are:

Shirts (per hour)

Total Cost (per hour)

um

1

20 26

31 35 forty eight 70 102

2 three or more

4

five

6 (only completed shirts are counted)...