ECON 209 Engineering Economics Midterm Solutions

ECON/ENGG 209 Midterm Winter 2025 ECON/ENGG 209 Midterm Exam Monday, March 3, 2025 70 minutes DO NOT OPEN UNTIL INSTRUCTED TO DO SO Name (last, first): Student Number: Marks Received: /50 Part I, ...

ECON/ENGG 209 Midterm Winter 2025 ECON/ENGG 209 Midterm Exam Monday, March 3, 2025 70 minutes DO NOT OPEN UNTIL INSTRUCTED TO DO SO Name (last, first): Student Number: Marks Received: /50 Part I, Multiple Choice /25 Part II, Short Answer /3 Part III, Calculation /22 Instructions: · You have a total of 70 minutes to complete this exam · You may not leave in the last ten minutes of the exam. Please remain seated until the exams are collected. · Please ensure your name and student number are on your exam and your bubblesheet · Only multiple-choice answers in your bubble sheet will be graded · Make sure your short answer and calculations are legible and clearly written · Part marks may be awarded even if your answer is wrong. Show your work! ECON/ENGG 209 Midterm Winter 2025 Part I – Multiple Choice (25 marks). Choose the best answer and fill it into the bubble sheet. Only answers in the bubble sheet will be graded. 1. Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy? A. the government B. producers C. consumers D. consumers and producers E. the government, consumers and producers Answer: A 2. A business owner decides to use a vacant lot to build a restaurant instead of a parking garage. What is the opportunity cost of this decision? A. The cost of building the restaurant B. The income that could have been earned from the parking garage C. The revenue generated by the restaurant D. The number of employees hired for the restaurant E. The amount of taxes paid on the vacant lot Correct Answer: B) The income that could have been earned from the parking garage 3. Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are A. substitutes in consumption. B. both inferior goods. C. complements in consumption. D. both luxury goods. E. both unrelated goods. Answer: C 4. What would happen in the market for dental replacement of old mercury fillings if provincial health plans started to cover a portion of the price of voluntary procedures? A. Demand will increase, but this will not shift the supply curve. B. Supply will increase, but this will not shift the demand curve. C. Demand and supply will both increase. D. Demand will increase and supply will decrease. E. Demand will decrease and supply will decrease. Answer: A