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Questions and answers, Microeconomic Principles Midterm Exam 3 with Answers: A Comprehensi, Exercises of Microeconomics

A detailed midterm exam for microeconomic principles (econ 103), covering various key concepts such as labor productivity, relative prices, market structures, and financial intermediaries. the exam includes multiple-choice questions with answers, offering students a valuable opportunity to test their understanding and identify areas needing further review. the questions delve into core economic principles and their applications, making it a useful resource for students to assess their knowledge and prepare for future assessments.

Typology: Exercises

2024/2025

Uploaded on 04/24/2025

taylor-rapoza
taylor-rapoza 🇺🇸

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8 Questions with answers on docsity-midterm-
exam-3-with-answers-microeconomic-
principles-econ-103pdf
You'll find the list of questions at the end of the document
1. What is the economic reason for the difference in average hourly
wages between workers in Sri Lanka and the USA?
C. American labor is more productive because our workers are paid more
than workers in Sri Lanka.
2. At what quantity would a firm maximize profits?
C. Where marginal cost is equal to marginal revenue.
3. Which of the following is not true with respect to relative price?
B. The price of the good is determined by all other variables.
4. If the bank pays savers 3.5%, charges borrowers 7%, has 1.5%
administration expenses, and has $2 million in loanable funds, what
are the bank's total profits?
A. $60,000.
5. Which of the following is not true about advertising?
A. Advertising lowers prices and is a form of competition.
6. Which of the following statements about monopolies is not true?
B. Perfect price discriminating monopolists do not restrict output but raise
price as compared to the perfect price competition market.
7. What is the main economic reason for the existence of financial
intermediaries like banks?
D. They lower transactions costs.
8. If the coefficient of elasticity is +1.7, what can be inferred?
A. Supply is elastic.
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Download Questions and answers, Microeconomic Principles Midterm Exam 3 with Answers: A Comprehensi and more Exercises Microeconomics in PDF only on Docsity!

8 Questions with answers on docsity-midterm-

exam-3-with-answers-microeconomic-

principles-econ-103pdf

You'll find the list of questions at the end of the document

  1. What is the economic reason for the difference in average hourly wages between workers in Sri Lanka and the USA?

C. American labor is more productive because our workers are paid more than workers in Sri Lanka.

  1. At what quantity would a firm maximize profits?

C. Where marginal cost is equal to marginal revenue.

  1. Which of the following is not true with respect to relative price?

B. The price of the good is determined by all other variables.

  1. If the bank pays savers 3.5%, charges borrowers 7%, has 1.5% administration expenses, and has $2 million in loanable funds, what are the bank's total profits?

A. $60,000.

  1. Which of the following is not true about advertising?

A. Advertising lowers prices and is a form of competition.

  1. Which of the following statements about monopolies is not true?

B. Perfect price discriminating monopolists do not restrict output but raise price as compared to the perfect price competition market.

  1. What is the main economic reason for the existence of financial intermediaries like banks?

D. They lower transactions costs.

  1. If the coefficient of elasticity is +1.7, what can be inferred?

A. Supply is elastic.

8 Questions on docsity-midterm-exam-3-with-

answers-microeconomic-principles-

econ-103pdf

What is the economic reason for the difference in average hourly wages between workers in Sri Lanka and the USA?

At what quantity would a firm maximize profits?

Which of the following is not true with respect to relative price?

If the bank pays savers 3.5%, charges borrowers 7%, has 1.5% administration expenses, and has $2 million in loanable funds, what are the bank's total profits?

Which of the following is not true about advertising?

Which of the following statements about monopolies is not true?

What is the main economic reason for the existence of financial intermediaries like banks?

If the coefficient of elasticity is +1.7, what can be inferred?