Econ Final

In: Business and Management

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* The date when you finished the final exam: December 13 2013

You are advised to print a copy of this exam and read it prior to taking it. Make sure you have a word processor to use during the above dates (at home or work, in a lab or a public library, etc.). Do not use the small textbox to write your answers in WebTycho. Send me the electronic file with your answers as an attachment through the Assignments link! Please do not delete the questions as you are answering them. You may use the shaded/underlined field for the answers, or insert some additional space.

Section 1: Multiple-Choice (28 Questions). 2 Points each. 56 Points total. Write the letter of the correct answer in the shaded/underlined field immediately after the question.

The table below shows the hypothetical utility schedule for a consumer of chocolate candy bars.

[pic]

1. Refer to the above table. This consumer begins to experience diminishing marginal utility when consuming the:
A. Third candy bar
B. Fourth candy bar
C. Sixth candy bar
D. Seventh candy bar B.

2. Refer to the above table. Marginal utility becomes negative with the consumption of the:
A. Fourth candy bar
B. Fifth candy bar
C. Sixth candy bar
D. Seventh candy bar
D.

3. Refer to the above table. Based on the data in the above table you can conclude that the:
A. Marginal utility of the fourth unit is 7
B. Marginal utility of the third unit is 18
C. Total utility of 5 units is 30
D. Total utility of 3 units is 34
C.

4. Refer to the above table. The consumption of which bar yields the greatest marginal utility?
A. Third
B. Fourth
C. Sixth
D. Seventh
A.

Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that when he hires different numbers of workers, the corresponding total revenues are as follows:

[pic]

5. Refer to the above table. What is the marginal…...

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