Sample Exam

ECO/561 Sample Final Examination

This Sample Examination represents the Final Examination that students complete in Week Six. As in the following Sample Examination, the Final Examination includes questions that assess the course objectives. Although the Sample Examination includes one question per objective, the Final Examination includes three questions per course objective.

Refer to the questions in the following Sample Examination to represent the type of questions in the Final Examination. Refer to the weekly readings and content outlines for each week as study references for the Final Examination.

Week One: Increasing Revenue

Objective: Choose methods to increase revenue in an organization.

1. If the price elasticity of demand for gasoline is 0.20 

a. the demand for gasoline is linear

b. a rise in the price of gasoline will reduce total revenue

c. a 10% rise in the price of gasoline will decrease the amount purchased by 2%

d. a 10% fall in the price of gasoline will increase the amount purchased by 20%

Objective: Explain market equilibrating process.

2. If the demand and supply curves for product X are stable, a government-mandated increase in the price of X will

a. increase the supply of X and decrease the demand for X

b. increase the demand for X and decrease the supply of X

c. increase the quantity supplied and decrease the quantity demanded of X

d. decrease the quantity supplied of X and increase the quantity demanded of X

Week Two: Cost Concepts

Objective: Identify production level to maximize profits.

3. Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus the demand for labor

a. will increase

b. will decrease

c. may either increase or decrease

d. will not change

Objective: Explain how to balance fixed and variable costs.

4. Because of higher corn prices, firms producing...