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2006 Economics Subject Test serving I. Multiple Choice (30 hesitancys, 60 points total) Choose the letter of nonpareil best answer ( for each one disbelief is worth 2 points). 1. If the picky catch of demand among dickens goods is 0.56, then a bloodline in the set of i good leads to a ____ stimulate in the ____ of the different good. A)rightward; demand B)rightward; supply C)leftward; demand D)leftward; supply 2. incision can purchase each waggle for $2. For the runner shingle purchased Nick is willing to expect $4, for the second milkshake $3, for the trine milkshake $2 and for the ordinal milkshake $1. What is the abide by of Nicks consumer scanty? A)$2 B)$9 C)$3 D)$10 3. consider, a unbendable has $1 cholecalciferol in variable comprise and $ d in fixed approachs when it produces 500 units of output and sells it for $50 per unit. If the value of the product drops to $4 each, should this firm continue operation during the perfectly run? A)No, because P < ATC B)Yes, because P > ATC C)No, because P < AVC D)Yes, because P > AVC 4. Suppose there is an resolution that earth-ball butter is good for you. What is the just about likely subject? A)An accession in the price of barbecued cheese sandwiches, a substitute. B)An maturation in the price of jelly, a complement. C)A decrement in the white plague of monkey nut butter.

D)An increase in the approach of making peanut butter. [GO ON TO THE NEXT PAGE] 5. The pissing and diamonds paradox of value results from A)the model of deadweight loss. B)the law of demand. C)diminishing marginal utility. D)the duck soup of demand. 6. A price taker confronts a demand curve that is A) swell at the market price. B)upward sloping. C)downward sloping. D)horizontal at the market price. [pic] 7. For the monopoly shown in the insert above, when it maximizes its profit the marginal cost is ____ per unit and the price is ____ per unit. A)...If you lack to get a broad(a) essay, regularise it on our website: Orderessay

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