Brajer, V. and Gill, A. Remediating Prerequisite Deficiencies to Improve Success in Intermediate Microeconomic. Appendix.

Appendix Name______________________________ CSUF Spring 1999 Department of Economics Math and Economics Pre-Test for Econ 315/310 Students Test Form B Instructions: You must use Scantron form 20787-ERI for this test. Check your test form letter (A, B, C, or D) from above, and fill in the appropriate test form space on your Scantron. After completing questions on your background, answer questions 10-24. For each question choose the best possible answer and fill in the appropriate space on your Scantron sheet. Write your name on this exam. You can write on it, but you must return this exam when you are done. Time limit: 45 minutes. Questions regarding your background: When did you complete the introductory microeconomics course required for Econ 315/310? last semester. in Spring 1998. more than one year ago, but less than two years ago. two or more years ago. Where did you take the introductory microeconomics course? Mark (e) below if your College/University name already appeared in the previous question. Mount San Antonio College. Orange Coast College. Irvine Valley College. Coastline Community College. none of the above. What was your grade in the introductory microeconomics course? A B C D F When did you complete the Business Calculus/Mathematics or equivalent course required for Econ 315/310? last semester. in Spring 1998. more than one year ago, but less than two years ago. two or more years ago. Where did you take the Business Calculus/Mathematics course? California State University, Fullerton. Fullerton College. Rancho Santiago College (Santa Ana College). Saddleback College. go to the next question. Where did you take the Business Calculus/Mathematics course? Mark (e) below if your College/University name already appeared in the previous question. Mount San Antonio College Orange Coast College Irvine Valley College Coastline Community College. none of the above. What was your grade in the Business Calculus/Mathematics course? A B C D F What is your overall GPA? 3.5 and above. between 3.0 and 3.49 between 2.5 and 2.99 between 2.0 and 2.49 below 2.0 Questions on Basic Mathematics and Microeconomics: The equilibrium market price of oranges is $5, but a price ceiling imposed by a government restriction does not allow the market price to go above $4. Assume typical slopes for demand and supply curves and compare the price ceiling outcome with the market equilibrium When the price ceiling is imposed: there will be excess demand in the market. output produced will be higher. there will be excess supply in the market. none of the above. Assume that demand and supply curves in the market for apples have typical slopes. If the price of apples rises in this market, which one of the following options must have occurred? demand curve for apples must have shifted to the left. supply curve of apples must have shifted to the right. orange (a substitute of apple) prices must have gone down. none of the above. Which of the following results in a shift of a demand curve for good x? supply curve of x shifts. price of x changes. income of the consumer changes. none of the above. Suppose market demand may be represented by: P = 20 - 4Q and the market supply is P = 10 + 6Q, where P is the price and Q is the quantity demanded or supplied. What is the equilibrium price in a competitive market? 22 10 16 none of the above. When the demand for good x is inelastic, what happens as the price of good x rises? total revenue from the sale of good x will rise. total revenue from the sale of good x will fall. total revenue from the sale of good x will not change. total revenue from the sale of good x may rise, fall or stay the same. A perfectly competitive, profit-maximizing firm produces at a point where marginal cost is above marginal revenue. marginal cost equals price. marginal revenue is above price. there is a large profit. One difference between a monopolist firm and a perfectly competitive firm is that: a monopolist produces where price is lower than marginal cost; a perfectly firm produces where price is higher than marginal cost. a monopolist produces larger output than a competitive firm. the price that a monopolist charges is always above its marginal cost while price is equal to marginal cost for a perfectly competitive firm. none of the above. Table 1A shows a relationship between the number of workers employed (L) and total product (TP) of a firm. What is the marginal product when employment rises from 3 to 4? Table 1A. L TP 0 0 1 10 2 25 3 35 4 40 5 42 6 42 2 10 5 none of the above. Table 2A shows a relationship between total product (TP) and total cost (TC) of production of a firm. What is the marginal cost of production when total product goes up from 35 to 40? Table 2A. TP TC 10 5 25 10 35 15 40 20 42 25 10 0.5 1 2.5 Ben quit his job as manager of a large grocery store to become the sole owner of a small convenience store. He gave up the $30,000 salary he was earning at the large grocery store. He also used his retirement fund of $30,000, which would have earned $3000 (10% per year), as an initial investment in the convenience store. After one year, his accountant determined that his accounting profit after expenses were paid was equal to $25,000. Assuming that Ben paid himself no salary for the first year, his ECONOMIC PROFIT was: $ 0 - $ 8,000 - $ 33,000 + $ 25,000 Find the slope of the line containing the points: (2,6) and (4,9). -3/2 7/8 6/15 none of the above. The price of a loaf of bread increased from 50 cents to 56 cents in one year. This constitutes a percentage change of _____ . 6 % 56 % 10 % 12% Figure 1 Consider Figure 1. Which line corresponds to the equation y = - m + nx? (Assume that both m and n are positive numbers). line ab line cd line ef line gh none of the above Find the first derivative (i.e., dy/dx ) of the equation y = x2 + 6x. (x3/3) + 3x2 2x + 6 x3 + 6x2 none of the above. Find the maximum value of y, when y = 4x - x2 4 2 8 none of the above.