Thursday / Friday April 2 / 3

Students finished their chapter study, and the class reviewed the items.

Students were given the following sample questions to help prepare for the test on Monday; the class reviewed items by student request.

Sample Micro-Economics Test Questions

Note: Test questions may include more complex variations of these skills and knowledge.

NOTES

1) Which will result in having more money at the end of the time periods specified?

A) $10,000 earning 5% for one year

            Or

B) $1,000 earning 5% for ten years

2) Which will result in having more money at the end of the time periods specified?

A) $5,000 earning 5% for one year

            Or

B) $5,000 earning 1% for five years

2A) Given the figures above; which option “A” or “B” has the greater “opportunity cost”?

3) Which will result in having more money at the end of the time periods specified?

A) Starting with $0 and adding $1000 each year while earning 5% interest for ten years

            Or

B) $10,000 earning 5% for five years

4) If a major scientific study came out next week proving that eating one apple a day will make a person healthier, happier, more popular, and richer what will you expect to happen to the prices of apples?

5) The current Demand for oil is shown as D1; will D2 or D3 be the new Demand for oil as a result of a new invention that makes electric cars cheaper and easier to produce?

6) If the price of a “Good A” rises, according to the Law of Supply what will producers do?

7) What are the economics arguments in favor or against raising the legal minimum wage?

8) If a company sell widgets for $2, and it’s fixed costs are 10 dollars, and it’s marginal cost is $1 how many widgets must it sell in order to begin to make a profit?