7 LOG, a rtenty Directions: Each ofthe question oi toca nd bgt eich covgosatidades focnnligacssalidaden {) gover den ty @ Seer cod mesply Some (2 Assume tha popcorn and movie stndzce tre > complement nd thet Say Conceaio grows corn sulle for popping. Mr. Concesaon will mort ‘ly sla grower quanty of poping com ata ‘ghar ple If which of the oman? (A) Ths wages of farm worker od movie theater (8) A tbthogel ngroveeat ei eas expensive and more efficient harvesting of (©) The nnodoction ofnew fat ice potato chips ‘rovidea new competion ja the mack-food mee (Dyfi release of tawe summer movies sete 7 seconds for movie uteadanee. (Now government equations force movie ‘eaters to hire mar security guards at each ‘heuer. competitive markt, which of the 7? follwing sit inthe mpply and demand caves ‘ill efstely cams bot the equlitsam price snd quay to decrease? ‘Suoly Gave ‘Demand Care (A) Shits tote te ——_—Shifisto bole @) Shitstoibe let osha 5 © Shiite right Shia wo beright ost ‘Shit othe sight No hit ‘Shit tothe left incomplete satemeats below is followed by five suggested ancwers or ‘completions. Select the coe tht i best in each cave and then fl athe corresponding oval en the ent wer she. 1, Th basic econonse problem ofall coontes isthe exitnce of 4. dopa anise good, wich be ‘Slowly ott (9) The dana ce erga ive @) ‘he denned cave fr topes eh (©, Aaincaein to pe ep wl Soren be pny em (ype ee i die Se conan flop (A erousin cote icone wi decreas ‘Sesh oftcloge 5. Yaihef te flowing eet willcae be Send crear akg aio Hh? nc inte in aa Oye: reo pias (By Anes be peo ech ie, (© Aaintra aepe Senta {© Aderemeinte en cthenegs © A decency Sobers 10 ON TO THE WEXT PAGE« pk Questions 6-7 refer tothe graph below, which (6, The vertealdatnce CF represent tho (A) toa conto producing Q, wit of oxtpat @) svenge toa cont of rodbeing Qy wate of cy ont (© wremes fied coe of protcing Q, mit of cup (D) svereg vale cost of producing Quis of ott (© sent of he S's oe rnaking om ro- ecng Q, units of ox 7, Hargreaves equal to Plo the following statement are us EXCEPT: (A) Tea reve wil egal tal cows {@) The fem wil prodaes Q, wie of oxtpat (©) Thoin will protace te efcet evel of cups ‘he im wil ex normal pot. i il cee poe athe Gein 4 Whieh of he lowing test dears ered ‘competitive marker? J (A) Many sal fm podocng diffrenated ote ein spa aan (2) Many eal fms prodcing a bemogecous ‘rovdct and facing significant bares to cary @ smnall fms producing a homogenecus ose fae pia tre to Ai ag fn prt i aod fring gnicant bei Yo caty © Atewneyo nt odecng viral ect ino ipa arent10. Which of th fellowingsatement is woe fr 12, Monopolies a infcetconpeedto petty mittee, famggapreeeneis ; poms oe taco 1 etd naa vm : \, See an (Se, ©) eso co wc set Bompihe eee PK @ The demand core ixenect the ply curve (©) chara pice es than serge tel ost ¢ 13. An individea's labor supply curve derived Spat pee's eters at do. 14 A profitemaxinixing Sem wil tire (A) Inbar unt ts wage ato equa average (@ bee uma ies wage rate oquals its marginal ‘revenue predact (© tabor win wage ae cous tho interest rata (©) capital wot the mee rtsequls the wage 7 (© capil uni tho interest rat excnds the wage ‘ie15, A chemiea plant plies a river that eevee as tbo ‘water supply for weary town. Froman econo ‘mis’s point of view, pollution fom the plant should be reduced unl the benefit from cleaner wate i equal to the marginal cout of making the water Samer (85s bene om leer ie al ‘marginal benef froin cleaner water is 20 ‘eeal benefit fom clegner waters equal io the total cost of making te water cleaner ‘eel benefit from cleaner water ia marimized OES? nt eo denne ee ee ee ace os Thecy spat on cleg teion > $B icy sto clog expos {@) tony ston books sd pi 17. Acoumty om coorume beyond i prsentproduc- tion possbliis curve wien t a \ [Siretetne rato | ‘Questlons 18-19 refer tothe graph below. The market x correaly in equilibria, | { | | | | T ua 18, tn acompettv epultun, commer spa it hw We Over aver @ ame 19, Ifa pic lori et at X, tbe quantity emtoded will (A) Increase fromm OR t0 0 (2) ace fm OR 0 OF rom 0S to OR decrease from OT 1 OR (© notetange >i Tt vk ee pt of at (A) etter ee Se ee eee pe : Fe err vii, 9 newman oe Biaieyaeeauecne ate iad tevin npc Podemntervicus Rosie, 21. The demand curve for a normal god slopes down, {ex which of the flowing reasons? Am nereasein the pice ofthe goo induces ‘onnamers wn 4086 2 0 23, Which ofthe following sstements stra for peed compete rm but not tre for opal? (A) Th spre a ti avegs (a em cna ae te ata pie er (©) Wink fora ths indy. (D) The Gem for tm’ podt init asi (The fem mos lower in pice inorder to se ‘more of i prodt, 24. tte pecfety compete indutry were monope. "aed without sy change in cot condense ice and quniy produced would Chnge a ‘ich of the flowing ways? Prien Suan j rere Decrease ‘May lcreio or decreas ®) Decree nde, th act Tee pale arate ‘rcs of be products $12 A fm prodcor ta [evel of tpt where tverng al cont S16, are Se / Sec Giareemeene, ose es ‘Sh To marine tate bo frm shoals27 pat in spe wi et Se at ele Ss econ ate oa ego A roonspolat produces too litle of he good, er state Ls ‘Smear anne re ong reese areas Ors Spleen © Anes isc charging low-income people wit elastic trating eae factor of ‘might be beter lized In eter infuse the peice for a protect prodaced ia a comped- ‘Hye markt increases, which ofthe following ot Hl wo osu a the labor maha or Speers who proce thet proce? derand for labor aod the numberof seals A fuetoe of prodaction will NOT exm ecimonie ‘et when is soppy is o> er ’ Winer te reson of oo es sae xmas, on weguned mat wl i 0 it of he god being 5 prodoced “By sepia ott of gt road serie 36 21, Tec tow shows th mero ls coma Game sd Onaga oe penne, : Soma Somers wat Oro cats oe ‘Gothing Penna mame ‘Which ofthe flowing stein te according othe chart shove? series 5 eat a og nnn 3? or Sikng etason and ot ae (BP Since Gaga on pres tt ds cloding nage cues a Gum, ‘fcame bones Go tne wth Games |B Stace Guna ca proto hoo a clohing wing fever sure fn Oey ‘temnt beta ena wth Ones Bro 2cy st Sst soma deren in ato cat probe wil i (A) oh he demo cave athe ply uve to the right © de ete cee et ey core ¢ Desh Se are ile 1B ony spy eve ie @ caytedamad cove wbeiet ig wr (3 A prety competive fm, caring econo p> FAC ‘profit, prodoces and sells 100 unite of output at 1 pros o€ $20 per uni If its marginal cont of Increasing out to a rato of 10 eit x $18, af sees stot tno SEERA ner par ‘curves for gaoline, Which of the folowing will PBS Toe ttl evens rom ling 11 waits 1 SHritad goverment coches set aing sane wie tal reves Gua sling of31.20 pr paoa? oun bee ae et pt i in 2 time aee mace ea no a ro om ng rag of 0 ln pale Seo cence meanest Baoaae Paar dan a abcd ees “99 TOMATO i, tom man esi peste sat at Tima ge fn em ti ce cumiy “Es Soa ° 99. Jat hero in por cmption { Edtgfdomnnd etl mt dos 2 SSoutive eich owing separ? 3 1s Ideas Firm's A zr ta or ist Dommicus Demat Gn SSerpeencton fee ie sven bal (0) Hz Downend ei Serer ohcing tls of caper Foon eS . 4 @ ug Ac 37 () Vertical * tao 20 a > 2a1 retain mma pic an cy’ Good Good X 1000 ° ‘90 100 980 200 970 300 oe opportunity cost of increasing the production a, MRSC ne oo” a) 10a of X ®) "SeOeniaof x a 200 mits of X Dani of X ‘Sof 53, Which of te fowing ions best iusratce Uelaw of demand? (A) Ase incomes of United Sate czens 34. The following chart shows the otal wilt that Jum _eeives from consuning various amount (@W erg sty font et candy bar i pean ht arin ly Som (©) Hail aly ten theft ety ber ‘spe hm he mya cy femite (Hie ity cree sts cosiat ee ey (©) His greatest marginal wilty comes fom his ‘copeumptin of the fou andy ba 23,3 Ina competitive labor marist for wurse: “musta corset es aee ‘Aa nce abe margin post of rues vrllinsewe tbe demand for nanes tc (paces the soppy of mrss wil vate wseoployment ta leave wages BB) Banco hs demand for beat are wil incese hs dena or ae a ‘wage Will eit in wemployment. voy 40, Which of the ftlowing sxtements shove he frm a © Wes comical mvemcns ee cbowschoe {$55 Revelog wok peri fr og orca Ronen or re 44. ers Sm te mga evn ron potting pic 2oo in, {fea fier ou eod easel 1s nan prs 8400 treme pfu tame of pal 8 produces 250 tits, it will exm no Which of the following combinations of factor PN Scoak et 4 me yolibemnaty fet roe oe © Ae iets gy) ia 0 gS © NeoiSaaissio00 Oe eectlater |" Bato S 4 citendepe firms is a characteristic: eam $2 $.5 sysccnedis a 33 a (4) lor mats 30 38 pecbccompetion 8B 533 Eoopery sor 4. nn United Stes, af ovement mcncpoly edicts by © Mince competence lg pn camming {Baier donecinettonpesestigsin (®t iter nn iit ene doy cmpre emacs ont iim, mame agi sina tag te fetdnstin pote at ame apa neh ; 9) “Een opstey Campenni hse pode al er wa ice dgrtwer sng ead, - & ening doe pee (GF relocating and retraining stwctorlly |) produc wt eel of ose whe ies ‘gical dao ot sale49. Aa increase in which of the following will mst g ‘ey revltin eng run rrp ot roc? The sutaber of super of be prodct Ouse mm 2 “© Tos dent Erie pee (©) The coms ofrscmcs ted to rodce the peau ‘CAPFFAL GOODS (© The fut ext price ofthe rect shove shows an. ‘scumeat $0. Soppose that « consumer purchases two £6 Reteamnicceicmga Suey medicines Enda goode If soceay chor nt MU the ally of X is TU, te argon "A wooing sally of Y ia MU te tal iy ot a <@oar tr contmpton nscale Rica tf ht curentcoamtmptcn reset, wich of he lloving expres (GP es cret capeal good i excang for fies conremer elton? ies far conrempton ($0 more fared carest consumption 10, =75, ML ‘$B leat compton ncn formome ——«) MU, sil, ego M a ‘eres pl gon cg (© TO, = TH & Tse contin (OyMv,sP, = MU, a # (47. Which of the following a troe in the elastic range OHO) +O) = 1 ota fiers demand cave \ 51: Asso that oa i cot ar $46 tat tho {GRP The fim should expend output to incense serge dct of laboraS sts when 10 as ‘conor Aine lala Size te say mae petite eon eae cet anemia ane (25, Maal reves pv, (GQ Tes Gms mati levee. ay 88 Bey cue fo mien wl i he twine int ciency of cbt at Yew £8) ince la wags in te nce ty ©) stecen nthe numberof onimen ect aces (Dy sce tenet te for mtrcile PETE NOM ae ( staruetn comune ease Back Siem inthe industry views ist aa fag ‘vertlal demand curve, eventhough th rket demnd curve is downward sloptig: (D) The fms inthe fadostry fave meammces ‘nceativeto increase outpet toe mere competiive level rn realizes that ita prot would cestode fom the cllive aprechent by fcreasng ~ production sig, ‘54. aperfecty competitive firm wishes to maximize polis tee rolcing vier pics see ak ‘marginal cost and average vatable cove then te Mc fionis @ prosicing too tine outpue () producing where ts marginal revenvo i les than it cow =z 55. ABC Limited, Inc, sel its prodectin : perfectly sEmpetive market fora ple of S15 pepe ey ‘ee wears a dally wage of 75 aborts a 4) decent 33 © dace Ss © isreaty S78 Bae, (A) Taxon of he upto «choclate Sater an eras tt eens oa oy 0 ln acntntronetomer 9 Saeremnages Simro ae a On Lssouronencrrce 9v ae’ 50. The cot Is dst ty ines ees in he df eae ie \itdeuse te oma ste od tetoce. (@ Mie salaies of basket players increase, ‘the quant of baketal pliers demanded: willdeerease.. (©) Antnereao in th income of consumert will increas the demiod for opera tickts. () An increase ia the demand for movie chats ‘will decease te demand for video reals. (A decrease inthe peice of movin tickets wil {increase the demand for movieckats.| 59. Which ofthe folowing sth best cxample of = agave eels? (A) An increao inthe price of ol duo to the. oo mponition of environmental regulations {(B) An crea fn th ple of ol dae to ation {alen bythe Organization of Petoleun Exporting Countries (OPEC) (©) A deating in ol tock prices a arerlt of bad ‘management Oi eae fromm deilingplatfome in is ‘Calf of Maxion (GD Deslining rercetios onthe poration of ‘esvignemade cre (©. Riva spy ofp godt non lio lea thn th efficient level of ouput, due to robles the freer () lows a the efile lve tout, due to the problen of inruficiest competion (© moe han the ffciea eel of ouput, dae to Tower costs of piv fie (©) moc than the effcn level of na eft output du to [ENDOR SECTION, a=