Final Exams Past Paper 2022 And Answers

1 National Chengchi University Department of Economics Principles of Economics: Microeconomics Final Part I: (30 Points) Choose the one alternative that best complete the statement or answer the question. _______ 1. The relationship of the consumption on Kiwi and Nuts is shown to the figure. Which of the statement is TRUE for this figure? A) Indifference curve U1 provides higher utility than indifference curve U2 B) Bundle A is preferred to bundle B C) Bundle C is preferred to bundle A D) Bundle A is preferred to bundle D _______ 2. Which of the following will lead to a change in the opportunity cost of buying a pen in terms of a pencil? A) An increase in the consumer's income B) A decrease in the consumer's income C) A twofold increase in the prices of both pens and pencils D) A twofold increase in the price of pens and a threefold increase in the price of pencils _______ 3. Sofia is selling homemade cakes. The demand for homemade cakes is elastic. If Sofia reduces the price of her cakes, ________. A) her revenue will increase B) her revenue will decrease C) her revenue will not change D) she will not