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

Size: px
Start display at page:

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

Transcription

1 It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in _2_(You are Given 2 ½ hours) hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question. After the time limit, go back over your work with a different colour or on a separate piece of paper and try to do the questions you are unsure of. Record your ideas in the margins to remind yourself of what you were thinking when you take it up at PASS. The purpose of this mock exam is to give you practice answering questions in a timed setting and to help you to gauge which aspects of the course content you know well and which are in need of further development and review. Use this mock exam as a learning tool in preparing for the actual exam. Please note: Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work. Often, there is not enough time to review the entire exam in the PASS workshop. Decide which questions you most want to review the Facilitator may ask students to vote on which questions they want to discuss in detail. Facilitators do not bring copies of the mock exam to the session. Please print out and complete the exam before you attend. Facilitators do not produce or distribute an answer key for mock exams. Facilitators help students to work together to compare and assess the answers they have. If you are not able to attend the PASS workshop, you can work alone or with others in the class. Good Luck writing the Mock Exam! Dates and locations of mock exam take-up: Sunday December 10 th, :00 to 16:00 Mackenzie Building 3275 Tuesday December 12 th, :30 to 15:30 Mackenzie Building 3275

2 PART 1: Multiple Choice 30 Questions 1. A lighthouse is an example of a? a. Club Good b. Private Good c. Public Good d. Common Resource 2. A good that is excludable, but not rival in consumption is an example of? a. Ice Cream b. Algonquin Park c. Highway 401 d. Ontario Provincial Police 3. From the list below, what does not shift the demand curve in the labour market? a. Output Price b. Technological Change c. Changes in Alternative Opportunities d. The Supply of other Factors 4. If W = P*MPL, what is another way to express this? a. P = MC b. P=VMPL c. P=MPL/W d. P=W 5. The demand curve is a perfectly competitive market is? a. Perfectly elastic because goods are not perfect substitutes b. Perfectly elastic because goods are perfect substitutes c. Perfectly inelastic because goods are perfect substitutes d. Perfectly inelastic because goods are perfect complements 6. In a perfectly competitive market a firm would shut down if? a. P<ATC b. P>AVC c. P<AVC d. P>ATC

3 7. A monopolies profit is equal to? a. Q (P - ATC) b. P (Q ATC) c. P (ATC Q) d. Q (ATC P) 8. Economies of scale is when? a. Average cost decreases while the quantity increases b. Average cost increase while the quantity increase c. Average cost decrease while quantity decreases d. Average cost decreases and price increases 9. In economics profit is maximized when economic profit is at zero, this is because of? a. Explicit Costs b. Implicit Costs c. Explicit and Implicit Costs d. Opportunity Cost 10. On average, the R-Factor measures? a. The percentage difference between income elasticity and Gini coefficient b. The percentage difference between the top fifth and bottom fifth of the income distribution c. The percentage difference between the Gini coefficient based on aftertax/transfers and the Gini coefficient based on market income d. The difference between the rate of return of capital relative to growth in the economy (i.e. r>g). 11. The entry of new firms in a monopolistic competitive market produces a for consumers. a. Positive business stealing externality b. Positive product variety externality c. Negative product variety externality d. Negative social cost externality

4 12. A defence for a firm advertising their product is? a. Firms advertise to manipulate people s tastes b. Firms advertise to impede healthy market competition c. Firms advertise to increase product differentiation and product loyalty d. Firms advertise to provide valuable information to their customers 13. The long-run equilibrium for a monopolistic competitive firm is at point? a. MR=MC, P>ATC b. MR=MC, P<AVC c. MR=MC, P=ATC d. MR=MC, AR = ATC 14. In a monopolistic market second degree price discrimination refers to the practice of? a. Charging different prices to consumers because of differences in elasticity of demand b. Charging different prices to consumers based on the quantity that is bought c. Charging different prices to consumers by exactly knowing each consumers willingness to pay d. Charging different prices to consumers based on inelasticity of demand 15. A 20 percent ad-valorem import tariff on an importing country for good X will in the domestic market for good X. a. Have a negative welfare effect and the government will lose revenue b. Have a positive welfare effect for consumers and the government will gain revenue c. Have a negative welfare effects and the government will gain revenue d. Have negligible welfare effects and the government will gain revenue 16. The marginal tax rate is 60 percent for income above $50,000, suppose the government tax rate is 20 percent on the first $50, 000. Suppose this person makes $60,000 annually. What is the amount of taxes paid and the average tax rate? a. $16, 000; 26.6 percent b. $60, 000; 26.6 percent c. $50,000; 26.6 percent d. $16,000; 20.6 percent

5 17. The Nash Equilibrium is best represented by? a. The dominate strategy b. Choose best strategy given what other actors have chosen c. Choose worst strategy given what other actors have chosen d. Collusion among firms 18. Section 45(1) of Canada s Competition Acts does not state that anyone conspires, combines, agrees or arranges with another person: is guilty of an indictable offence. a. To limit unduly facilities for transporting, producing, manufacturing, supplying, storing or dealing in any product b. To otherwise restrain or injure competition unduly c. To enter into collusion with another partner to increase competition d. To prevent, limit or lessen, unduly, the manufacture or production of a product to enhance the price 19. A competitive firm s marginal costs curve is representative of the firms? a. Demand Curve b. Average Revenue Curve c. Variable Cost Curve d. Supply Curve 20. Two policies towards managing externalities are? a. Corrective Taxes; Gasoline Tax b. Corrective Taxes; Stock Trading c. Corrective Taxes; Pollution Permits d. Corrective Taxes; Import Licence 21. The opportunity cost of good X in a PPF graph with good X on the horizontal axis and good Y on the vertical axis can be represented as? a. Y/X b. X/Y c. Comparative advantage d. Increasing opportunity cost

6 22. An increase in emigration would? a. Decrease labour supply and increase employment b. Decrease labour supply and decrease unemployment c. Increase labour supply and decrease employment d. Decrease labour supply and increase unemployment 23. Canada post is an example of a? a. Natural Monopoly b. Oligopoly c. Government created Monopoly d. Duopoly 24. The output effect is when? a. Q is higher and total revenue decreases b. Q is higher and total revenue marginally increases c. Q is higher and total revenue decreases in relation to price d. Q is lower and total revenue decreases 25. A key difference between a monopoly and competitive firm is? a. P=MR=MC; P=MR>MC b. P>MR=MC; P=MR=MC c. P<MR=MC; P=MR=MC d. (P-ATC)Q=π; P=(π/Q)+ATC 26. Economies of scale in an economy leads to? a. Coordination Problems b. Increased Costs c. Specialization d. Constant Average Costs 27. Relative to income the goods and services tax (GST), or a Value Added Tax (VAT), is representative of a? a. Proportional Tax b. Progressive Tax c. Lump-Sum Tax d. Regressive Tax

7 28. Coase theorem asserts that private parties is the best means to solve problems of externalities unless there are substantial? a. Efficiency Gains b. Transaction Costs c. Social Costs d. Efficiency Losses 29. Regulation is one way for the government to manage monopolies. One might conclude that by making the price equal to the monopoly marginal cost, through government regulation, total surplus would be maximized and resources would be allocate efficiently. An adverse effect of this policy is? a. Marginal cost would be below average total cost and firms would enter the market. b. Marginal cost would be below average total cost and firms would shutdown. c. Marginal cost would be below average total cost and firms would exit the market. d. Marginal cost would be above average total cost and firms would exit the market. 30. Which economist argued that advertising artificially enhanced the desire for private goods while public spending on schools, parks, hospitals suffered? a. Friedrich Hayek b. John Galbraith c. Milton Friedman d. Jeremy Bentham --SHORT AND LONG ANSWER FOLLOW--

8 PART 2: Short Answer 3 Questions Answer all THREE Questions. 1. Use a production costs table and a diagram to illustrate the effects of a shift in labour supply and labour demand. Give one example that would shift the labour supply and one example that would shift the labour demand. Then discuss your findings in detail explaining all the changes in the labour market. Remember to label all necessary parts of the diagram and to show all necessary calculations in the production costs table (i.e. MPL, VMPL etc.).

9 2. Suppose there are two countries, Home and Foreign. Home imports bananas and Foreign exports bananas. Using a diagram show the effect of a 20 percent ad valorem tariff on Home imports of bananas, then show the effect of an export subsidy on foreign exports of bananas (Note: that the tariff and subsidies occur in isolation). Afterwards calculate that net welfare effect of the tariff on Home, then calculate the net welfare effect of the export subsidy on foreign market for bananas. Discuss the gains and losses. Remember to label all necessary parts of the diagram and to show all necessary calculations.

10 3. In a market with similar but differentiated products, show one diagram with short run profits and one diagram with short-run losses. Then, in a separate diagram, show the long-run market equilibrium in the market. Explain two externalities in the market that occur because of profits and losses. Remember to label all necessary parts of the diagram and to show all necessary calculations.

11 PART 3: Long Answer 1 Question: Answer BOTH parts a) and b). 1. a. In a market where everyone is a price taker and goods are perfect substitutes show the short-run and long-run effect of a decrease in the market price in both the firm and market diagrams, assuming that there are supply rigidities. Then show the long-run supply curve and explain two reasons why the long-run supply curve is upward sloping. b. Again, for the firm and the market diagrams show the effect of a decrease in demand in the short-run in the whole market. Give an example of a factor that would decrease demand in this market. Compare and contrast your answer from part a) discuss if this market is operating at an efficient scale of production. Remember to label all necessary parts of the diagram and to show all necessary calculations.

12 !!!Congratulations on Finishing the Mock for Microeconomics ECON 1000 C. You will do great in the Exam!!!

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.

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.

More information

ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

ECON 1001 A. 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 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.

More information

Microeconomics Exam Notes

Microeconomics Exam Notes Microeconomics Exam Notes Opportunity Cost What you give up to get it Production Possibility Frontier Maximum attainable combination of two products (Concept of Opportunity Cost). Main Decision Makers:

More information

Unit 6 Perfect Competition and Monopoly - Practice Problems

Unit 6 Perfect Competition and Monopoly - Practice Problems Unit 6 Perfect Competition and Monopoly - Practice Problems Multiple Choice Identify the choice that best completes the statement or answers the question. 1. One characteristic of a perfectly competitive

More information

MICROECONOMIC FOUNDATIONS OF COST-BENEFIT ANALYSIS. Townley, Chapter 4

MICROECONOMIC FOUNDATIONS OF COST-BENEFIT ANALYSIS. Townley, Chapter 4 MICROECONOMIC FOUNDATIONS OF COST-BENEFIT ANALYSIS Townley, Chapter 4 Review of Basic Microeconomics Slides cover the following topics from textbook: Input markets. Decision making on the margin. Pricing

More information

MICRO FINAL EXAM Study Guide

MICRO FINAL EXAM Study Guide AP MICROECONOMICS-217 Name: MICRO FINAL EXAM Study Guide Instructions: Please fight senioritis! Study & be efficient with your time. DUE: Friday April 28 th (Multiple choice block 4/26 th or 27 th Free

More information

a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF

a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF 1. Suppose that - at a given level of an economic activity - marginal social cost is greater than marginal social benefit. Which of the following statements is TRUE? I. Social surplus would be higher at

More information

AP Microeconomics. Content Skills Learning Targets Assessment Resources & Technology

AP Microeconomics. Content Skills Learning Targets Assessment Resources & Technology St. Michael Albertville High School Teacher: Matthew Rooker AP Microeconomics October 2014 Content Skills Learning Targets Assessment Resources & Technology November 2014 Content Skills Learning Targets

More information

MICROECONOMICS DIAGRAMS

MICROECONOMICS DIAGRAMS MICROECONOMICS DIAGRAMS 1. Abnormal Profit 5. Average Fixed Costs 2. ad valorem tax At Qpm, Ppm > Pcost All costs are covered and then some! 6. Average Product The red line diminishes, but never becomes

More information

REDEEMER S UNIVERSITY

REDEEMER S UNIVERSITY REDEEMER S UNIVERSITY Km 46/48 Lagos Ibadan Expressway, Redemption City, Ogun State COLLEGE OF MANAGEMENT SCIENCE DEPARTMENT OF ECONOMICS AND BUSINESS STUDIES COURSE CODE /TITLE ECO 202/Microeconomics

More information

Eco402 - Microeconomics Glossary By

Eco402 - Microeconomics Glossary By Eco402 - Microeconomics Glossary By Break-even point : the point at which price equals the minimum of average total cost. Externalities : the spillover effects of production or consumption for which no

More information

Hours needed to produce one unit of manufactured goods agricultural goods Pottawattamie 6 3 Muscatine 3 2

Hours needed to produce one unit of manufactured goods agricultural goods Pottawattamie 6 3 Muscatine 3 2 Econ 101, sections 2 and 6, S06 Schroeter Makeup Exam Choose the single best answer for each question. 1. A "zero sum game" is one in which a. every player breaks even in the long run. b. there is only

More information

Monopolistic Competition. Chapter 17

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

More information

Ecn Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman. Final Exam

Ecn Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman. Final Exam Ecn 100 - Intermediate Microeconomic Theory University of California - Davis June 11, 2009 Instructor: John Parman Final Exam You have until 8pm to complete the exam, be certain to use your time wisely.

More information

Microeconomics. Use the Following Graph to Answer Question 3

Microeconomics. Use the Following Graph to Answer Question 3 More Tutorial at www.dumblittledoctor.com Microeconomics 1. To an economist, a good is scarce when: *a. the amount of the good available is less than the amount that people want when the good's price equals

More information

AP Microeconomics Review Session #3 Key Terms & Concepts

AP Microeconomics Review Session #3 Key Terms & Concepts The Firm, Profit, and the Costs of Production 1. Explicit vs. implicit costs 2. Short-run vs. long-run decisions 3. Fixed inputs vs. variable inputs 4. Short-run production measures: be able to calculate/graph

More information

DAY AND TIME YOUR SECTION MEETS: ENTER THE NUMBER UNDER "SPECIAL CODES" ON THE SCANTRON SHEET

DAY AND TIME YOUR SECTION MEETS: ENTER THE NUMBER UNDER SPECIAL CODES ON THE SCANTRON SHEET SECOND HOURLY EXAMINATION ECON 200 Spring 2008 Version B STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: ENTER THE NUMBER 246135 UNDER "SPECIAL CODES" ON THE SCANTRON

More information

The above Figure 1 shows the demand and cost curves facing a monopolist.

The above Figure 1 shows the demand and cost curves facing a monopolist. Practice 13&14 1) The key characteristics of a monopolistically competitive market structure include A) few sellers. B) sellers selling similar but differentiated products. C) high barriers to entry. D)

More information

Micro Semester Review Name:

Micro Semester Review Name: Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects

More information

CH 15: Monopoly. Lecture

CH 15: Monopoly. Lecture CH 15: Monopoly Lecture Characteristics of Monopolies A monopoly is a market structure in which one firm makes up the entire market Firm=Industry Characteristics of Monopolies The monopolist is a price

More information

Principles of Economics. January 2018

Principles of Economics. January 2018 Principles of Economics January 2018 Monopoly Contents Market structures 14 Monopoly 15 Monopolistic competition 16 Oligopoly Principles of Economics January 2018 2 / 39 Monopoly Market power In a competitive

More information

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

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,

More information

Monopolistic Competition

Monopolistic Competition 16 Monopolistic Competition PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Monopolistic Competition Imperfect competition Between perfect competition and monopoly Oligopoly

More information

INTERMEDIATE MICROECONOMICS LECTURE 13 - MONOPOLISTIC COMPETITION AND OLIGOPOLY. Monopolistic Competition

INTERMEDIATE MICROECONOMICS LECTURE 13 - MONOPOLISTIC COMPETITION AND OLIGOPOLY. Monopolistic Competition 13-1 INTERMEDIATE MICROECONOMICS LECTURE 13 - MONOPOLISTIC COMPETITION AND OLIGOPOLY Monopolistic Competition Pure monopoly and perfect competition are rare in the real world. Most real-world industries

More information

What Is Covered. Econ 2 Final Exam. The Big Concepts. An Outline of Topics Covered In Econ 2

What Is Covered. Econ 2 Final Exam. The Big Concepts. An Outline of Topics Covered In Econ 2 What Is Covered Econ 2 Final Exam Where: Price Center Theatre Date: Friday March 24 Time: 8:00-11:00 a.m. Final is cumulative Heavier emphasis on chapters (14&15) not covered on earlier midterms Format:

More information

Practice Exam 3: S201 Walker Fall 2009

Practice Exam 3: S201 Walker Fall 2009 Practice Exam 3: S201 Walker Fall 2009 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.

More information

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3C

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3C ECON 21 (Summer 216 Sections 1 & 11) Exam #3C Multiple Choice Questions: (3 points each) 1. I am taking of the exam. C. Version C 2. is a market structure in which there is one single seller of a unique

More information

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3D

ECON 2100 (Summer 2016 Sections 10 & 11) Exam #3D ECON 21 (Summer 216 Sections 1 & 11) Exam #3D Multiple Choice Questions: (3 points each) 1. I am taking of the exam. D. Version D 2. is a market structure in which there is one single seller of a unique

More information

CONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37

CONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37 CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply 17 3 Elasticities 37 4 Government Intervention in Markets 44 5 Market Failure 53 6 Costs of

More information

Commerce 295 Midterm Answers

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

More information

ECON 101: Principles of Microeconomics Discussion Section Week 12 TA: Kanit Kuevibulvanich

ECON 101: Principles of Microeconomics Discussion Section Week 12 TA: Kanit Kuevibulvanich Important Concepts: Monopoly ECON 101: Principles of Microeconomics Discussion Section Week 12 Comparison of Perfectly Competitive Market and Monopoly Market Perfect Competition Monopoly Number of Participants

More information

ECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang

ECON 101 KONG Midterm 2 CMP Review Session. Presented by Benji Huang ECON 101 KONG Midterm 2 CMP Review Session Presented by Benji Huang Chapter 5 Efficiency and Equity Benefit, Cost, Surplus Consumers (1) A consumer benefits from the consumption of a product this benefit

More information

INSTITUTE OF ACTUARIES OF INDIA

INSTITUTE OF ACTUARIES OF INDIA INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 2 nd November 2015 Subject CT7 Business Economics Time allowed: Three Hours (10.30 to 13.30 Hrs.) Total Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1. Please

More information

ECONOMICS SOLUTION BOOK 2ND PUC. Unit 6. I. Choose the correct answer (each question carries 1 mark)

ECONOMICS SOLUTION BOOK 2ND PUC. Unit 6. I. Choose the correct answer (each question carries 1 mark) Unit 6 I. Choose the correct answer (each question carries 1 mark) 1. A market structure which produces heterogenous products is called: a) Monopoly b) Monopolistic competition c) Perfect competition d)

More information

INTRODUCTORY ECONOMICS

INTRODUCTORY ECONOMICS 4265 FIRST PUBLIC EXAMINATION Preliminary Examination for Philosophy, Politics and Economics Preliminary Examination for Economics and Management Preliminary Examination for History and Economics INTRODUCTORY

More information

1. For a monopolist, present the standard diagram showing the following:

1. For a monopolist, present the standard diagram showing the following: ECON 202: Principle of Microeconomics Name: Fall 2005 Bellas Second Midterm - Answers You have two hours and twenty minutes to complete this exam. Answer all questions, explain your answers, label axes

More information

CH 14: Perfect Competition

CH 14: Perfect Competition CH 14: Perfect Competition Characteristics of Perfect Competition 1. Both buyers and sellers are price takers A price taker is a firm (or individual) who takes the price determined by market supply and

More information

Essential Questions Content Skills Assessments Standards/PIs Resources/Notes. Discriminates between scarcity and shortage.

Essential Questions Content Skills Assessments Standards/PIs Resources/Notes. Discriminates between scarcity and shortage. Map: AP Economics Type: Consensus Grade Level: 12 School Year: 2010-2011 Author: Jessica Cartusciello District/Building: Island Trees/Island Trees High School Created: 06/28/2010 Last Updated: 07/22/2010

More information

BUSINESS ECONOMICS (PAPER IV-PART I)

BUSINESS ECONOMICS (PAPER IV-PART I) BUSINESS ECONOMICS (PAPER IV-PART I) (60 MARKS) Q1: Macroeconomics is also called economics (a) applied (b) aggregate (c) experimental (d) none Q2: A Study of how increase in the corporate income tax rate

More information

FINALTERM EXAMINATION FALL 2006

FINALTERM EXAMINATION FALL 2006 FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.

More information

NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Final Exam December 8, 2006

NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Final Exam December 8, 2006 NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Section I: Multiple Choice (4 points each) Identify the choice that best completes the statement or answers the question. 1. The slope

More information

ECON 102 Brown Final Exam (New Material) Practice Exam Solutions

ECON 102 Brown Final Exam (New Material) Practice Exam Solutions www.liontutors.com ECON 102 Brown Final Exam (New Material) Practice Exam Solutions 1. B A very large percent of their earnings comes from economic rent 2. B Any funds left, after everyone who has a claim

More information

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

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

More information

Econ Microeconomics Notes

Econ Microeconomics Notes Econ 120 - Microeconomics Notes Daniel Bramucci December 1, 2016 1 Section 1 - Thinking like an economist 1.1 Definitions Cost-Benefit Principle An action should be taken only when its benefit exceeds

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2 Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose

More information

Market structures. Why Monopolies Arise. Why Monopolies Arise. Market power. Monopoly. Monopoly resources

Market structures. Why Monopolies Arise. Why Monopolies Arise. Market power. Monopoly. Monopoly resources Market structures Why Monopolies Arise Market power Alters the relationship between a firm s costs and the selling price Charges a price that exceeds marginal cost A high price reduces the quantity purchased

More information

Chapter 11 Perfect Competition

Chapter 11 Perfect Competition Chapter 11 Perfect Competition Introduction: To an economist, a competitive firm is a firm that does not determine its market price. This type of firm is free to sell as many units of its good as it wishes

More information

Monopolistic Competition

Monopolistic Competition Monopolistic Competition 1. In a monopolistically competitive industry, profit-maximizing firms are price a. takers who produce a quantity where price is equal to marginal cost. b. takers who produce a

More information

Brown University ECON 1130, Intermediate Microeconomics (Mathematical) Spring 2017 Class meets Tuesdays and Thursdays, 1:00-2:30 p.m.

Brown University ECON 1130, Intermediate Microeconomics (Mathematical) Spring 2017 Class meets Tuesdays and Thursdays, 1:00-2:30 p.m. Brown University ECON 1130, Intermediate Microeconomics (Mathematical) Spring 2017 Class meets Tuesdays and Thursdays, 1:00-2:30 p.m. Professor: Roberto Serrano Office hours: Monday, 9:00 a.m. - 12:00

More information

ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions

ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions www.liontutors.com ECON 102 Kagundu Final Exam (New Material) Practice Exam Solutions 1. A A large number of firms will be able to operate in the industry because you only need to produce a small amount

More information

ECON 1101 Microeconomics Notes. Table of Contents

ECON 1101 Microeconomics Notes. Table of Contents ECON 1101 Microeconomics Notes Table of Contents Comparative Advantage and the Reason for Trade... 2 Perfectly Competitive Markets... 3 Demand... 6 Special Lecture... Error! Bookmark not defined. Demand

More information

1. For a monopolist, present the standard diagram showing the following:

1. For a monopolist, present the standard diagram showing the following: ECON 202: Principle of Microeconomics Name: Fall 2006 Bellas Second Midterm You have two hours and thirty minutes to complete this exam. Answer all questions, explain your answers, label axes and curves

More information

Chapter 33: Terms of Trade

Chapter 33: Terms of Trade Chapter 33: Terms of Trade 1 The Terms of Trade The division of the gains from trade depends on the terms of trade. The terms of trade are measured by the ratio of the price of exports to the price of

More information

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

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.

More information

ADVANCED PLACEMENT MICROECONOMICS COURSE SYLLABUS

ADVANCED PLACEMENT MICROECONOMICS COURSE SYLLABUS ADVANCED PLACEMENT MICROECONOMICS COURSE SYLLABUS Economics is a way of looking at the choices people make regarding their time, money, and talent. Studying economics shows how goods and services are produced,

More information

Ecn Intermediate Microeconomic Theory University of California - Davis March 19, 2009 Instructor: John Parman. Final Exam

Ecn Intermediate Microeconomic Theory University of California - Davis March 19, 2009 Instructor: John Parman. Final Exam Ecn 100 - Intermediate Microeconomic Theory University of California - Davis March 19, 2009 Instructor: John Parman Final Exam You have until 5:30pm to complete the exam, be certain to use your time wisely.

More information

COURSE SYLLABUS AND INSTRUCTOR PLAN

COURSE SYLLABUS AND INSTRUCTOR PLAN WACO, TEXAS COURSE SYLLABUS AND INSTRUCTOR PLAN Microeconomics Econ 2302.87 Brooks Wilson Summer 1 2013 Course Description: Introduces the principles and policies of microeconomics as applied to supply

More information

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January

More information

23 Perfect Competition

23 Perfect Competition 23 Perfect Competition Learning Objectives After you have studied this chapter, you should be able to 1. define price taker, total revenues, marginal revenue, short-run shutdown price, short-run breakeven

More information

1. Supply and demand are the most important concepts in economics.

1. Supply and demand are the most important concepts in economics. Page 1 1. Supply and demand are the most important concepts in economics. 2. Markets and Competition a. Def: Market is a group of buyers and sellers of a particular good or service. P. 66. b. Def: A competitive

More information

short run long run short run consumer surplus producer surplus marginal revenue

short run long run short run consumer surplus producer surplus marginal revenue Test 3 Econ 3144 Name Fall 2005 Dr. Rupp 20 Multiple Choice Questions (50 points) & 4 Discussion (50 points) Signature I have neither given nor received aid on this exam Use this table to answer questions

More information

Chief Reader Report on Student Responses:

Chief Reader Report on Student Responses: Chief Reader Report on Student Responses: 2018 AP Microeconomics Free-Response Questions Number of Students Scored 90,032 Number of Readers 91 Score Distribution Exam Score N %At 5 18,827 20.9 4 25,070

More information

2) A production method that relies on large quantities of labor and smaller quantities of capital equipment is referred to as a: 2)

2) A production method that relies on large quantities of labor and smaller quantities of capital equipment is referred to as a: 2) Micro: TA Session 4, Problem set MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The main difference between a short-run production function and

More information

Course Description: Objectives: Grading:

Course Description: Objectives: Grading: Boise State University Principals of Microeconomics ECON 202, Section 001, Liberal Arts Building, Room LA 106, Spring Semester 2011 Instructor: John Church Textbook: Exploring Microeconomics BSU Phone:

More information

Monopolistic Competition

Monopolistic Competition CHAPTER 16 Monopolistic Competition Goals in this chapter you will Examine market structures that lie between monopoly and competition Analyze competition among firms that sell differentiated products

More information

6) The mailing must be postmarked by June 15. 7) If you have any questions please me at

6) The mailing must be postmarked by June 15. 7) If you have any questions please  me at Examination Instructions: 1) Answer the examination only after you have read the honesty pledge below. 2) The multiple choice section will be taken in WebCT and a tutorial for using WebCT is to be found

More information

Ch. 9 LECTURE NOTES 9-1

Ch. 9 LECTURE NOTES 9-1 Ch. 9 LECTURE NOTES I. Four market models will be addressed in Chapters 9-11; characteristics of the models are summarized in Table 9.1. A. Pure competition entails a large number of firms, standardized

More information

Version #1. Midterm exam 2 November 18th, Student Name: ID# Discussion #

Version #1. Midterm exam 2 November 18th, Student Name: ID# Discussion # Econ 101-Fall 2008, Lecture 2 Professor Kelly Midterm exam 2 November 18th, 2008 Version #1 Student Name: ID# Discussion # You have 75 minutes to answer the exam. The exam contains 12 binary choice questions

More information

Final Exam - Solutions

Final Exam - Solutions Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 009 Instructor: John Parman Final Exam - Solutions You have until 1:30pm to complete this exam. Be certain to put

More information

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

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

More information

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman.

Ecn Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman. Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2008 Professor John Parman Final Examination You have until 12:30pm to complete the exam, be certain to use your

More information

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

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

More information

Microeconomics. Use the graph below to answer question number 3

Microeconomics. Use the graph below to answer question number 3 More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

More information

Microeconomics. Use the graph below to answer question number 3

Microeconomics. Use the graph below to answer question number 3 More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *

More information

CH 13. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

CH 13. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question. Class: Date: CH 13 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. One requirement for an industry to be perfectly competitive is that a. sellers and buyers

More information

A Planned Course Statement for. Economics, AP. Length of Period (mins.) 41 Total Clock Hours: 123. Periods per Cycle: 6 Length of Course (yrs.) 1.

A Planned Course Statement for. Economics, AP. Length of Period (mins.) 41 Total Clock Hours: 123. Periods per Cycle: 6 Length of Course (yrs.) 1. East Penn School District Secondary Curriculum A Planned Course Statement for Economics, AP Course # 266 Grade(s) 12 Department: Social Studies Length of Period (mins.) 41 Total Clock Hours: 123 Periods

More information

Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space at the bottom of the last page.

Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space at the bottom of the last page. Econ 101, Section 1, F09, Schroeter Makeup Exam Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space at the bottom of the last page. 1. When

More information

MICROECONOMICS - CLUTCH CH PERFECT COMPETITION.

MICROECONOMICS - CLUTCH CH PERFECT COMPETITION. !! www.clutchprep.com CONCEPT: THE FOUR MARKET MODELS Market structure describes the environment in which a firm operates, determined by the Perfect Competition Monopolistic Competition Oligopoly Monopoly

More information

Unit 4: Imperfect Competition

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

More information

THE UNIVERSITY OF WESTERN ONTARIO. E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2. 2. Check that your examination contains 50 questions.

THE UNIVERSITY OF WESTERN ONTARIO. E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2. 2. Check that your examination contains 50 questions. NAME THE UNIVERSITY OF WESTERN ONTARIO LONDON CANADA E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2 INSTRUCTIONS: 1. You will have 2 hours to complete the exam. 2. Check that your examination

More information

IB Economics Microeconomics Review Mr. Dachpian

IB Economics Microeconomics Review Mr. Dachpian IB Economics Microeconomics Review Microeconomics Review AP Microeconomics Chapter 1: Limits, Alternatives, & Choices IB Economics Chapter 2: The Market System and the Circular Flow Market Economies and

More information

INTRODUCTION ECONOMIC PROFITS

INTRODUCTION ECONOMIC PROFITS INTRODUCTION This chapter addresses the following key questions: What are profits? What are the unique characteristics of competitive firms? How much output will a competitive firm produce? Chapter 7 THE

More information

To produce more beach balls, you must give up ever increasing quantities of ice cream cones.

To produce more beach balls, you must give up ever increasing quantities of ice cream cones. Unit 01: Basic Concepts (Macro/Micro) Scarcity The Economic Problem: Unlimited wants, limited economic resources Factors of Production: -Land -Labor -Capital -Entrepreneurship Big 3 Questions: -What to

More information

Section I (20 questions; 1 mark each)

Section I (20 questions; 1 mark each) Foundation Course in Managerial Economics- Solution Set- 1 Final Examination Marks- 100 Section I (20 questions; 1 mark each) 1. Which of the following statements is not true? a. Societies face an important

More information

NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK.

NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE LEGIBLY AND IN INK. 1 INFORMATION & INSTRUCTIONS: DURATION: THREE (3) HOURS TOTAL MARKS: 300 INTERNAL EXAMINER : PROFESSOR D. MAHADEA EXTERNAL EXAMINER: MR R. SIMSON NB: STUDENTS ARE REQUESTED IN THEIR OWN INTEREST TO WRITE

More information

GACE Economics Assessment Test I (038) Curriculum Crosswalk

GACE Economics Assessment Test I (038) Curriculum Crosswalk Subarea I. Fundamental Economic Concepts (20%) Objective 1: Demonstrates an understanding of the fundamental concepts of economics A. Understands the concepts of scarcity, choice, and opportunity cost

More information

Lecture 11. Firms in competitive markets

Lecture 11. Firms in competitive markets Lecture 11 Firms in competitive markets By the end of this lecture, you should understand: what characteristics make a market competitive how competitive firms decide how much output to produce how competitive

More information

Sample Multiple-Choice Questions

Sample Multiple-Choice Questions E03 3 Microeconomics Summative Exam SAMPLE QUESTIONS Sample Multiple-Choice Questions Circle the letter of each correct answer 1 True statements about the theory of the firm in the short run and long run

More information

Unit 13 AP Economics - Practice

Unit 13 AP Economics - Practice DO NOT WRITE ON THIS TEST! Unit 13 AP Economics - Practice Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A natural monopoly exists whenever a single

More information

Monopoly. Econ 102: Introduction to Microeconomics

Monopoly. Econ 102: Introduction to Microeconomics Monopoly Econ 102: Introduction to Microeconomics 1 1.1 Goals of today s class Goals of today s class Learn how monopolies maintain market power. Learn how monopolies make production decisions. Learn how

More information

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION Name Seat Assignment ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION November 17, 2009 FORM 3. Directions 1. FILL IN YOUR SCANTRON WITH YOUR UNIQUE ID AND THE FORM NUMBER LISTED ON THIS

More information

Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)

Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100

More information

ECO401 current paper (May 2010) Today Paper ( )

ECO401 current paper (May 2010) Today Paper ( ) Solved by afaaq shani bhai adeel Asslam O Alikum ECO 401 MIDTERM PAPERS Solved by Afaaq Shani bhai n Adeel Remember Us In Your Prayers Best regard s Muhammad Afaaq Mba 3 rd Finance Group Afaaq_Tariq@yahoo.com

More information

A monopoly market structure is one characterized by a single seller of a unique product with no close substitutes.

A monopoly market structure is one characterized by a single seller of a unique product with no close substitutes. These notes provided by Laura Lamb are intended to complement class lectures. The notes are based on chapter 12 of Microeconomics and Behaviour 2 nd Canadian Edition by Frank and Parker (2004). Chapter

More information

Monopoly. PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University

Monopoly. PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 15 Monopoly PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Market power Why Monopolies Arise Alters the relationship between a firm s costs and the selling price Monopoly

More information

Econ 2113: Principles of Microeconomics. Spring 2009 ECU

Econ 2113: Principles of Microeconomics. Spring 2009 ECU Econ 2113: Principles of Microeconomics Spring 2009 ECU Chapter 12 Monopoly Market Power Market power is the ability to influence the market, and in particular the market price, by influencing the total

More information

The following key should help you understand the different types of activities students engage in during the course:

The following key should help you understand the different types of activities students engage in during the course: AP Microeconomics Course Overview Name Description AP Microeconomics AP Microeconomics studies the behavior of individuals and businesses as they exchange goods and services in the marketplace. Students

More information

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

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

More information