Micro Quiz 1 Essay

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QUIZ 01 - SOLUTION ECO303 – FALL 2014 INTERMEDIATE MICROECONOMIC THEORY Instructor: Ramiro Malaga Due date: Wednesday 10th September at 11:00 p.m. Please answer it on Blackboard. If you face any difficulty to submit your problem set, please send the answers by email to: ramiro.malagaortega@stonybrook.edu before deadline. CHAPTER 1: Thinking like an Economist. Problem 1 Microeconomics is primarily the study of how: A. B. C. D. The stock market works. People (agents) choose among alternatives. Businesses can make money. The economy functions as a whole. Answer: B Problem 2 You are considering renting a car for the weekend. It costs $200 for the car plus $0.20 per mile (including gas). If you decide to go on a 300…show more content…
Where there are surpluses and shortages. Suppliers agree to charge. Answer: B Problem 13 Please refer to the following diagram. In the diagram if the supply curve is S, the equilibrium price is: A. B. C. D. 4 3 2 0 Answer: B 4 Problem 14 If the Surgeon General announces that colas cause cancer then we would expect A. B. C. D. The The The One demand demand demand cannot for cola will shift right. for cola will shift left. for cola will stay the same. tell. Answer: B Problem 15 A war in the Middle East causes the price of oil to rise. What would we expect to happen to the demand for automobile tires? A. B. C. D. The The The One demand demand demand cannot for automobile for automobile for automobile tell what will tires will shift right. tires will shift left. tires will stay the same. happen with the information given. Answer: B Problem 16 If the State of California decides to raise the drinking age to 25, what would happen to the demand for beer? A. The demand for beer will shift right. B. The demand for beer will shift left. C. The demand for beer will stay the same, but people will move up the demand curve consuming less. D. One cannot tell what will happen with the information given. Answer: B Problem 17 A new technology is announced which allows manufacturers to produce widgets for less. Widgets are a key input in the production of

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