# Midterm 1 60 minutes Econ 1101: Principles of Microeconomics October 8, Exam Form A

Size: px
Start display at page:

Download "Midterm 1 60 minutes Econ 1101: Principles of Microeconomics October 8, Exam Form A"

Transcription

2 1. For question 1, please fill in (a) on your bubble sheet, as this is exam form A. (We are using this question to verify the exam form.) a) Form A The following four questions consider the market for widgets. For each of the following situations, determine what happens to the equilibrium quantity (Q widget ) and equilibrium price (P widget ) of widgets. 2. Income increases. Assume widgets are an inferior good. a) Q widget and P widget. b) Q widget and P widget. c) Q widget and P widget. d) Q widget and P widget. 3. The price of smidgets increases. Assume smidgets and widgets are complements. a) Q widget and P widget. b) Q widget and P widget. c) Q widget and P widget. d) Q widget and P widget. 4. The price of wood increases. Wood is an input in the production of widgets a) Q widget and P widget. b) Q widget and P widget. c) Q widget and P widget. d) Q widget and P widget. 5. Two things happen: (i) the price of smidgets increases; (ii) the price of wood increases. a) Q widget and we can t tell what happens to P widget. b) Q widget and we can t tell what happens to P widget. c) P widget and we can t tell what happens to Q widget. d) P widget and we can t tell what happens to Q widget. 6. Consider the widget industry. Suppose the price of an input increases, and as a consequence, Q widget decreases while P Widget remains unchanged.. Which of the following is a possible explanation for why this happened? a) Demand is perfectly inelastic. b) Supply is perfectly inelastic. c) Demand is perfectly elastic. d) Supply is perfectly elastic. e) none of the above. 2

3 7. In an industry, (1) demand is perfectly inelastic and (2) supply is perfectly elastic. If a tax is imposed in this industry, bear the entire burden of the tax and equilibrium quantity. (Pick an answer to fill in the blanks.) a) Buyers, decreases. b) Buyers, is unchanged. c) Sellers, decreases. d) Sellers, is unchanged. Reservation Prices and Costs in Econland for a Widget Name of D Person Reservation price for one widget (dollars) Cost to make one widget (dollars) D1 9 1 S1 D2 8 2 S2 D3 7 3 S3 D4 6 4 S4 D5 5 5 S5 D6 4 6 S6 D7 3 7 S7 D8 2 8 S8 D9 1 9 S9 D S10 Name of S Person 8. The table above provides reservation prices and costs for the inhabitants of Econland. Suppose we have an allocation where S2, S3, S4, S5, S6 each produce a widget and D2, D3, D4, D5, D6 each consume a widget. This is not Pareto efficient because a) D2 can sell a widget to D7 for \$5 and both are better off. b) S7 can sell a widget to D7 for \$5 and both are better off. c) S1 can sell a widget to D1 for \$10 and both are better off. d) S6 can pay \$3 to S1 to outsource production of the widget to S1, and both are better off. e) None of the above. 9. Suppose there is a price ceiling of \$3. What inefficiency might result? a) D9 might end up consuming a widget while D1 does not b) D6 might end up consuming a widget while D2 does not c) S5 might end up producing a widget while S3 does not.. d) S2 might end up producing a widget while S1 does not. e) None of the above 3

4 The above diagram gives information about demand and supply in a particular market. The next few questions ask you to determine the effects of a tax of \$4 per unit. To answer the questions, it is recommended that you first fill out the table below. Variable Free Market Q 6 \$4 Tax Change P D 2 P S 2 CS 18 PS 0 Gov't Surplus 0 TS Suppose there are no externalities associated with this market and there is no monopoly. What is the efficient output level (the output that maximizes total surplus in this market)? a) 4 b) 5 c) 6 d) 7 e) 8 4

5 11. The equilibrium consumer price P D under the \$4 tax is a) 4 b) 5 c) 6 d) 7 e) Consumer surplus under the \$4 tax is a) 1 b) 2 c) 4.5 d) 8 e) The change in total surplus from the \$4 tax is a) 0 b) 4 c) 6 d) 8 e) Assume the same demand and supply curve in the diagram above, but consider a different policy. The government has implemented a supply management policy in the industry, limiting industry quantity to Q = 4. It does this by distributing 4 units total of quota and requiring that any firm producing output have quota equal to how much the firm produces. Suppose it is possible to buy and sell quota on a quota exchange. The equilibrium price of quota at the quota exchange (per unit of quota) equals a) 0 b) 1 c) 2 d) 4 e) The total market value of the quota equals the quantity of quota times the price of quota. Which of the alternative quota quantities below maximizes the total market value of quota? a) Q = 2 b) Q = 3 c) Q = 4 d) Q = 5 e) Q = 6 5

6 16. Which of the following conditions are satisfied in a Pareto efficient allocation?. (1) The consumer reservation value of the last unit consumed equals the marginal cost of the last unit produced (2) Consumption is allocated to consumers with the highest willingness to pay. (3) Production is allocated to producers with the lowest cost. (4) Total surplus is allocated in an equitable way. a) (1). b) (2) and (3) c) (1), (2), and (3) d) None of the above 17. Which of the following two statements are true about the deadweight loss of a tax, per dollar collected of a tax? (1) It tends to be large when taxes are small. (2) It is zero when demand is perfectly elastic. a) (1). b) (2) c) (1) and (2) d) Neither (1) nor (2). Consider the following conditions that may or may not apply about a market: (1) All goods are normal goods (2) Consumers and Producers split the surplus equally (3) The market structure is perfect competition (4) There are no externalities in the market. 18. The First Welfare Theorem states that the unregulated market is Pareto efficient if which of the above conditions hold? a) (1) and (2) b) (2) and (4) c) (3), and (4) d) (1), (2), (3). and (4) 19. Suppose that when the price of a good falls from \$5 to \$3, the quantity demanded increases from 9 units to 11 units. From this information, we can say that a) demand is elastic b) demand is inelastic c) demand is unit elastic d) the income elasticity is negative e) the income elasticity is positive 6

7 20. If price equals \$8 in the above market there is excess supply. Consider a policy where the government buys up all the excess supply, to prevent the price from falling below \$8. What will be the total expenditures of the government on the program? a) \$8 b) \$16 c) \$24 d) \$32 e) \$ Compared to the free market, the change in producer surplus from this policy equals a) ACHF b) ACMK. c) FHNK. d) AEHF e) BCHG 22. Now use the same graphs to consider a different policy. Suppose a price ceiling of \$2 is imposed on the original sellers. However, resales by consumers are legal. The change in total surplus (dead weight loss) of the policy equals a) BHG b) FHMK. c) FHNK. d) ABHMK e) There is no deadweight loss. 7

8 23. Consider the following facts: The widget price falls 10 percent while the price of smigets (a complement) falls 20 percent. Suppose the quantity of widgets demanded increases 5 percent, and there are no other changes in the determinants of widget demand. What can we conclude about the own price elasticity of demand for widgets? a) It equals 2. b) It equals ½. c) It exceeds 2. d) It is less than ½. Consider the following statements about income elasticity (1) For inferior goods, income elasticity is negative. (2) For necessity goods, income elasticity is between zero and one. (3) When income elasticity for a good is greater than one, the share of income spent on the good is higher with higher income. 24. Which of the above statements about income elasticity are true? a) (1) and (2) only b) (2) and (3) only c) (3) only d) (1), (2), and (3) 25. Recall the Aplia experiment with the \$30 price ceiling. Suppose you are a buyer in this game with a \$50 valuation for obtaining a book. Your optimal buying strategy is a) Wait until the high price books are sold, then buy a low price book at the very end, just before the bell ends the auction round. b) Submit an offer to buy a book for \$29.99 immediately at the start of the round. c) Submit an offer to buy a book for \$30 immediately at the start of the round. d) Submit the first bid approximately half way through the course of the auction. 26. The wholesale price of electricity in the United Kingdom tends to be expensive at 3 p.m. and cheap at 3 a.m. because a) Regulators require that prices vary that way. b) The demand for electricity is high at 3 p.m. and low at 3 a.m. c) The cost of running an oil-fueled generator is lower at 3 a.m. than at 3 p.m. d) More producers participate in the auction at 3 p.m. compared to 3 a.m. 8

9 27. Suppose we have an industry where demand is more elastic in the long run than the short run. Suppose the supply curve shifts and as a result, the equilibrium price increases and equilibrium quantity decreases. Relative to the initial price and quantity, in the long run, price increases and quantity decreases, than in the short run. (Pick an answer to fill in the blanks.) a) less, less. b) less, more. c) more, less. d) more, more. 28. To calculate the short-run demand elasticity in the US gasoline market, we use data on gasoline demand and prices in June 2007 and June Factor(s) that we are holding fixed by picking these dates include: a) The seasonal pattern of demand. b) Gasoline supply in the market c) Both (a) and (b) d) Neither (a) or (b) 29. To estimate the long-run demand elasticity, we use data on gasoline consumption and prices from US and Norway in On account of what factor (or factors) would this approach tend to overestimate the long-run elasticity? a) Public transit access, a substitute, is better in Norway b) Per capita income is substantially lower in Norway. c) Gas prices are substantially higher in Norway due to high taxes. d) All of the above e) Both (a) and (c) 30. From gas consumption data and income data of various countries, we noticed a pattern where the richest European countries consume the most gasoline, this makes sense since gasoline is a good, and if we expect income to increase substantially in the near future in China, their demand for gasoline will. a) normal, decrease b) normal, increase c) inferior, decreased d) inferior, increase 9

10 You are the Independent System Operator (ISO) in an electricity market. You have received the bid information in the table below for a double auction. Each buyer s bid is an offer to buy one unit of electricity. Each seller s bid is an offer to sell one unit of electricity. Buyers Bid (Offer to buy in \$ ) Sellers Bid (Offer to sell in \$) Aretha 2 Allie 11 Bill 8 Brett 2 Charles 11 Cindy 1 Dane 9 David 4 Elizabeth 9 Earl What price clears the market? a) 2 b) 11 c) 9 d) 4 e) In the market clearing allocation, buys and sells. a) Aretha, Allie b) Aretha, Brett c) Bill, Allie d) Dane, David 10

### Econ 2113 Test #2 Dr. Rupp Fall 2008

D Econ 2113 Test #2 Dr. Rupp Fall 2008 Name Pledge: I have neither given nor received aid on this exam Version A Signature: Directions: Bubble in name: Last, First Bubble in 00 in Special Codes Sign the

### EC101 DD/EE Midterm 2 November 7, 2017 Version 01

EC101 DD/EE Midterm 2 November 7, 2017 Version 01 Name (last, first): Student ID: U Discussion Section: Signature EC101 DD/EE F17 Midterm 2 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

### 1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States.

1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States. c. the effect of income redistribution on work effort. d. how the allocation of

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Assigned Seat ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 7, 2013 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number

### Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011

Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011 There are 30 multiple choice questions in this problem set. Answer these questions by the beginning of the class

### Multiple Choice Part II, A Part II, B Part III Total

SIMON FRASER UNIVERSITY ECON 103 (2007-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, A Part II, B Part III Total PART I. MULTIPLE CHOICE (56%, 1.75 points each). Answer on the bubble

### PICK ONLY ONE BEST ANSWER FOR EACH BINARY CHOICE OR MULTIPLE CHOICE QUESTION.

Econ 101 Summer 2015 Answers to Second Mid-term Date: June 15, 2015 Student Name Version 1 READ THESE INSTRUCTIONS CAREFULLY. DO NOT BEGIN WORKING UNTIL THE PROCTOR TELLS YOU TO DO SO You have 75 minutes

### FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 DAY AND TIME YOUR SECTION MEETS:

FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: BEFORE YOU BEGIN PLEASE MAKE SURE THAT YOUR EXAMINATION HAS BEEN DUPLICATED

### MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions

MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

### Econ 001: Midterm 2 (Dr. Stein) Answer Key Nov 13, 2007

Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key Nov 13, 2007 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and label

### Problem Set 5. The price will be higher than the equilibrium price. There will be a surplus of cheese.

Problem Set 5 I. 1. The government has decided that the free-market price of cheese is too low. a) Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram

### Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011

Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key March 23, 2011 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and

### 2007 NATIONAL ECONOMICS CHALLENGE NCEE/Goldman Sachs Foundation

2007 NATIONAL ECONOMICS CHALLENGE NCEE/Goldman Sachs Foundation National Round I: Microeconomics David Ricardo Division 1. If your income tax liability is \$15,000 and your income is \$60,000, your A. average

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 5, 2011 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number listed

### Econ Test 2B Dr. Rupp Tuesday, March 3, 2009 Pledge: I have neither given or received aid on this exam Signature

Econ 2113 - Test 2B Dr. Rupp Tuesday, March 3, 2009 Name Pledge: I have neither given or received aid on this exam Signature Multiple Choice Identify the letter of the choice that best completes the statement

### Econ 101, sections 2 and 6, S06 Schroeter Exam #2, Red. Choose the single best answer for each question.

Econ 101, sections 2 and 6, S06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. If the own-price elasticity of demand for a good is -2.0, this implies that consumers would a.

### Instructions: must Repeat this answer on lines 37, 38 and 39. Questions:

Final Exam Student Name: Microeconomics, several versions Early May, 2011 Instructions: I) On your Scantron card you must print three things: 1) Full name clearly; 2) Day and time of your section (for

### ECON Midterm #2 Practice Problems

ECON 1101 - Midterm #2 Practice Problems Question #1 Suppose that there is a small country known as Econland. Now lets open up Econland to the world economy. Suppose the world price of widgets is \$2. Since

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 3 Directions 1. Fill in your scantron with your unique-id and the form number

### UNIT 4 PRACTICE EXAM

UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the

### Exam Spring. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Class: Date: Exam1 2014 Spring Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Ch.6 When a tax is imposed on the buyers of a good, the demand curve shifts

### ECON December 4, 2008 Exam 3

Name Portion of ID# Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. 1. A fundamental source of monopoly market power arises from a. perfectly

### Assignment 2: Supply and Demand

Assignment 2: Supply and Demand (Reference: Mankiw and Taylor, Chapters 4, 5, 6) Multiple Choice 1. Suppose that a large dairy farmer is able to raise the market price of milk by restricting milk supply

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 8, 2014 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number listed

### VERSION 1. Economics 101 Lec 3 Elizabeth Kelly Fall 2000 Midterm #3 / Version #1 December 4, Student Name: ID Number: Section Number: TA Name:

Economics 101 Lec 3 Elizabeth Kelly Fall 2000 Midterm #3 / Version #1 December 4, 2000 VERSION 1 TF+MC roblem Total Student Name: ID Number: Section Number: TA Name: NOTE: This information and the similar

### Monopoly and How It Arises

Monopoly and How It Arises A monopoly is a market: That produces a good or service for which no close substitute exists In which there is one supplier that is protected from competition by a barrier preventing

### ECON 1000 D. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 2.5 hours. Work on your own. Keep your notes and textbook closed. Attempt every question.

### ECON 251. Exam 1 Pink. Fall 2013

ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater

### After studying this chapter you will be able to

3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences

### Welfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade

Welfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade Dr. Anna Kowalska-Pyzalska Department of Operations Research Presentation is based

### Title: Micro In the market below, what would be true at a price of \$6?

Title: Micro 1.1 1. In the market below, what would be true at a price of \$6? a. There is excess demand (a shortage) of 10 units. b. The market is in equilibrium. *c. There is excess supply (a surplus)

### Bremen School District 228 Social Studies Common Assessment 2: Midterm

Bremen School District 228 Social Studies Common Assessment 2: Midterm AP Microeconomics 55 Minutes 60 Questions Directions: Each of the questions or incomplete statements in this exam is followed by five

### JANUARY EXAMINATIONS 2005

No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper

### Basics of Economics. Alvin Lin. Principles of Microeconomics: August December 2016

Basics of Economics Alvin Lin Principles of Microeconomics: August 2016 - December 2016 1 Markets and Efficiency How are goods allocated efficiently? How are goods allocated fairly? A normative statement

### S11Microeconomics, Exam 3 Answer Key. Instruction:

S11Microeconomics, Exam 3 Answer Key Instruction: Exam 3 Student Name: Microeconomics, several versions Early May, 2011 Instructions: I) On your Scantron card you must print three things: 1) Full name

Micro Chapter 6 -price ceiling or price cap: government regulation that makes it illegal to charge a price higher then a specified level -effects of the price cap on the market depend on whether the ceiling

### ECON 251 Exam 2 Pink. Fall 2012

ECON 251 Exam 2 Pink Use the table below to answer the following four questions The table below shows Harry s total utility from consuming beer and wine. The price of beer is \$2 per bottle. The price of

### Economics : Principles of Microeconomics Spring 2014 Instructor: Robert Munk April 24, Final Exam

Economics 001.01: Principles of Microeconomics Spring 01 Instructor: Robert Munk April, 01 Final Exam Exam Guidelines: The exam consists of 5 multiple choice questions. The exam is closed book and closed

### Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied \$ \$ \$ \$ \$10 2 8

Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied \$ 2 18 3 \$ 4 14 4 \$ 6 10 5 \$ 8 6 6 \$10 2 8

### Intermediate Microeconomics Spring 2005 Midterm Exam

Intermediate Microeconomics Spring 2005 Midterm Exam K. Yamamoto Answer all the questions in the sections A and B. For the section C, answer any two (2) questions. A. 1.Use the following two statements

January 13, 2010 This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License. Profit Maximizing Auctions Last time we saw that a profit maximizing seller will choose

### Microeconomics. Lecture Outline. Claudia Vogel. Winter Term 2009/2010. Part II Producers, Consumers, and Competitive Markets

Microeconomics Claudia Vogel EUV Winter Term 2009/2010 Claudia Vogel (EUV) Microeconomics Winter Term 2009/2010 1 / 28 Lecture Outline Part II Producers, Consumers, and Competitive Markets 9 Evaluating

### Practice Test for Midterm 2 Econ Fall 2009 Instructor: Soojae Moon

Practice Test for Midterm 2 Econ 2010-200 Fall 2009 Instructor: Soojae Moon Please read carefully and choose the choice that best completes the statement or answers the question. Table 7-2 This table refers

### Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials

LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were

### 3. At the price of \$60 each, sellers offer and buyers wish to purchase pairs of jeans a day. A. 60; 20 B. 8; 24 C. 16; 16 D. 24; 8

EC201 Exam II Review 1. Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, ticket prices are \$60. Ingrid's reservation price is \$75. But when Ingrid tries to

### 1. T F The resources that are available to meet society s needs are scarce.

1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility

### Class Agenda. Note: As you hand-in your quiz, pick-up graded HWK #1 and HWK #2 (due next Tuesday).

Class 7 Class Agenda 1. Finish discussion on consumer and producer surplus (welfare theory). 2. Elasticity problems (individual/group work to prep for quiz). 3. Quiz #1. Note: As you hand-in your quiz,

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### VANCOUVER ISLAND UNIVERSITY. ECON100: Principles of Economics, Spring 2013 MIDTERM EXAM I

VANCOUVER ISLAND UNIVERSITY ECON100: Principles of Economics, MIDTERM EXAM I Name (Last, First): ID #: Signature: THIS EXAM HAS TOTAL 10 PAGES INCLUDING THE COVER PAGE Instructions: Total marks 65 and

### Chapter 6 Elasticity: The Responsiveness of Demand and Supply

hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related

### Monopolistic Competition. Chapter 17

Monopolistic Competition Chapter 17 The Four Types of Market Structure Number of Firms? Many firms One firm Few firms Differentiated products Type of Products? Identical products Monopoly Oligopoly Monopolistic

### Commerce 295 Midterm Answers

Commerce 295 Midterm Answers October 27, 2010 PART I MULTIPLE CHOICE QUESTIONS Each question has one correct response. Please circle the letter in front of the correct response for each question. There

### AP Microeconomics Review With Answers

AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show

### Sample. Final Exam Sample Instructor: Jin Luo

Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.

### Coffee is produced at a constant marginal cost of \$1.00 a pound. Due to a shortage of cocoa beans, the marginal cost rises to \$2.00 a pound.

Microeconomics, Module 11: Monopoly (Chapter 10) Illustrative Test Questions (The attached PDF file has better formatting.) Updated: June 27, 2005 Question 11.1: Monopoly All but which of the following

### ECON 251 Practice Exam 2 Questions from Fall 2013 Exams

ECON 251 Practice Exam 2 Questions from Exams Gordon spends all his income on spatulas and mixing bowls. Spatulas cost \$4 and mixing bowls cost \$12. Gordon has \$60 of income and considers both spatulas

### AP Microeconomics Chapter 4 Outline

I. Learning Objectives In this chapter students should learn: A. How to differentiate demand-side market failures and supply-side market failures. B. The origin of consumer surplus and producer surplus,

### (per day) Pizzas. Figure 1

ECONOMICS 10-008 Dr. John Stewart Sept. 25, 2001 Exam 1 Detailed solution for one Form of the Midterm: The general question are the same for all forms but some questions differ in details so correct answer

### 14.01 Principles of Microeconomics, Fall 2007 Chia-Hui Chen November 7, Lecture 22

Monopoly. Principles of Microeconomics, Fall Chia-Hui Chen November, Lecture Monopoly Outline. Chap : Monopoly. Chap : Shift in Demand and Effect of Tax Monopoly The monopolist is the single supply-side

### VANCOUVER ISLAND UNIVERSITY. ECON211: Principles of Microeconomics, Spring 2013 SAMPLE MIDTERM EXAM. Name (Last, First): ID #: Signature:

Important: Please remember it is a sample exam. Number of questions in each section and structure of questions in Part B would vary as discussed in class VANCOUVER ISLAND UNIVERSITY ECON211: Principles

### I enjoy teaching this class. Good luck and have a nice Holiday!!

ECON 202-501 Fall 2008 Xiaoyong Cao Final Exam Form A Instructions: The exam consists of 2 parts. Part I has 35 multiple choice problems. You need to fill the answers in the table given in Part II of the

### AP/IB Economics Unit 2.1: Supply, Demand and Equilibrium. Welker's Wikinomics 1

Unit 2.1 Unit Overview Markets Definition of markets with relevant local, national and international examples Brief descriptions of perfect competition, monopoly and oligopoly as different types of market

### Unit 4: Imperfect Competition

Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique

### The total final is worth 30 points. Each question is worth 2 points, and each sub question is worth an equal share of the two points.

Final PPA 723, Fall 2002 Professor John McPeak December 9 th, 2002 Name: The total final is worth 30 points. Each question is worth 2 points, and each sub question is worth an equal share of the two points.

### University of Toronto February 6, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3

Department of Economics Prof. Gustavo Indart University of Toronto February 6, 2009 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 3 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

### JANUARY EXAMINATIONS 2008

No. of Pages: (A) 9 No. of Questions: 38 EC1000A micro 2008 JANUARY EXAMINATIONS 2008 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates

### Comm295 Midterm Review Package. October, Content:

Managerial Economics Comm295 Midterm Review Package October, 20 2014 Supply and Demand Elasticity Regression Analysis Consumer Choice Production Cost Concepts Profit Maximization Perfect Competition Monopoly

### I. Price Elasticity of Demand: Amy s demand for cheesecakes is Q d = 90 4P.

Economics 101 Homework #3 Fall 2008 Due 10/28/2008 at beginning of lecture Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on

### 1. Suppose that policymakers have been convinced that the market price of cheese is too low.

ECNS 251 Homework 3 Supply & Demand II ANSWERS 1. Suppose that policymakers have been convinced that the market price of cheese is too low. a. Suppose the government imposes a binding price floor in the

### 1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot):

1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot): Quantity Total utility Marginal utility 0 0 XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX 200 0 = 200 1 200 XXXXXXXXXXX

### Chapter 15: Monopoly. Notes. Watanabe Econ Monopoly 1 / 83. Notes. Watanabe Econ Monopoly 2 / 83. Notes

Econ 3 Introduction to Economics: Micro Chapter : Monopoly Instructor: Hiroki Watanabe Spring 3 Watanabe Econ 93 Monopoly / 83 Monopolistic Market Monopolistic Pricing 3 Inefficiency of Monopoly Price

### Do not open this exam until told to do so. Solution

Do not open this exam until told to do so. Department of Economics College of Social and Applied Human Sciences K. Annen, Fall 003 Final (Version): Intermediate Microeconomics (ECON30) Solution Final (Version

### Econ 251 Spring Exam 1 Pink

Exam 1 Pink Susan has only 3 options for dinner: pizza, Subway or pasta. Going out for pizza is worth \$10 to her; getting Subway is worth \$8; and pasta is worth \$12 to her. The purchase price of each dinner

### Marginal willingness to pay (WTP). The maximum amount a consumer will spend for an extra unit of the good.

McPeak Lecture 10 PAI 723 The competitive model. Marginal willingness to pay (WTP). The maximum amount a consumer will spend for an extra unit of the good. As we derived a demand curve for an individual

### SUBJ SCORE # Version B: Page 1 of 13

SUBJ SCORE # Version B: Page 1 of 13 Economics 001 NAME Professor Levinson GU ID # Final Exam December 18, 2012 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?

### Economics 101 Midterm Exam #1. October 4, Instructions

Economics 101 Midterm Exam #1 October 4, 2001 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do not have one you will need to borrow one from

### The Model of Perfect Competition

The Model of Perfect Competition Key issues The meaning of perfect competition Characteristics of perfect competition and output under competition Competition and economic efficiency Wider benefits of

### Exam 3 Practice Questions

Exam 3 Practice Questions 1. The price elasticity of demand is a measure of: a) how quickly a particular market reaches equilibrium. b) the change in supply associated with lower prices. c) the percent

### Exam 1. Pizzas. (per day) Figure 1

ECONOMICS 10-008 Dr. John Stewart Sept. 30, 2003 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note a)=1, b)=2

### Economics 102 Summer 2015 Answers to Homework #2 Due Tuesday, June 30, 2015

Economics 102 Summer 2015 Answers to Homework #2 Due Tuesday, June 30, 2015 Directions: The homework will be collected in a box before the lecture. Please place your name on top of the homework (legibly).

### Competitive Markets. Chapter 5 CHAPTER SUMMARY

Chapter 5 Competitive Markets CHAPTER SUMMARY This chapter discusses the conditions for perfect competition. It also investigates the significance of competitive equilibrium in a perfectly competitive

### Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman Final Exam You have until 12:30pm to complete this exam. Be certain to put your name,

### Econ 200: Lecture 9 April 28, Learning Catalytics Session: Types of Goods 2. Exam Review

Econ 200: Lecture 9 April 28, 2016 0. Learning Catalytics Session: 65477700 1. Types of Goods 2. Exam Review 2 Refer to the figure below. The social cost of dry cleaning is higher than the private cost

### Econ 001: Midterm 2 (Dr. Stein) Answer Key March 31, 2008

Instructions: Econ 001: Midterm 2 (Dr. Stein) Answer Key March 31, 2008 This is a 60-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and

### Econ 200: Lecture 6 October 14, 2014

Econ 200: Lecture 6 October 14, 2014 0. Learning Catalytics Session: 47811348 1. Economic Efficiency 2. Price Ceilings and Floors and Efficiency 3. Start Taxes (if time) Reminder: Article Response Writing

### Monopoly CHAPTER. Goals. Outcomes

CHAPTER 15 Monopoly Goals in this chapter you will Learn why some markets have only one seller Analyze how a monopoly determines the quantity to produce and the price to charge See how the monopoly s decisions

### ECO 100Y L0201 INTRODUCTION TO ECONOMICS. Midterm Test #1

epartment of Economics Prof. Gustavo Indart University of Toronto October 26, 2007 ECO 100Y L0201 INTROUCTION TO ECONOMICS SOLUTIONS Midterm Test #1 LAST NAME FIRST NAME INSTRUCTIONS: STUENT NUMBER 1.

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Micro - HW 4 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In central Florida during the spring, strawberry growers are price takers. The reason

### Principles of MicroEconomics: Econ102

Principles of MicroEconomics: Econ102 Price Elasticity of Demand: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of

### SAMPLE FINAL. Part I - Multiple Choice Questions:

Part I - Multiple Choice Questions: SAMPLE FINAL 1. Which of the following is not a characteristic of a perfectly competitive market? a. Firms are price takers. b. Firms have difficulty entering the market.

### Economics 110 Midterm #2 Practice Multiple Choice Qs Spring 2014

Midterm #2 Practice Multiple Choice Questions: Elasticity is a. a measure of how much buyers and sellers respond to changes in market conditions. b. the study of how the allocation of resources affects

### EC101 DD Final Exam December 19, 2017 Version 05

EC101 DD Final Exam December 19, 2017 Version 05 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD Final Exam F17 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) Consumers have the ability to buy everything

### a. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run

I. From Seminar Slides: 3, 4, 5, 6. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm (PC), a monopolistically competitive firm (MC), both, or neither.

### EFFICIENCY OF MARKETS

7 CONSUMERS, PRODUCERS, AND EFFICIENCY OF MARKETS Problems and Applications 1. If a drought in Nova Scotia reduces the apple harvest, the supply curve for apples shifts to the left, as shown in Figure

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price