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

Size: px
Start display at page:

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

Transcription

2 (This page is intentionally left blank as an extra work sheet.) DO NOT DETACH THIS SHEET FROM THIS EXAM BOOKLET! 2

4 4. Suppose the government imposes an excise tax on bicycles. It requires suppliers of bicycles to pay a \$50 tax on every bicycle they sell. The economic incidence of the tax refers to: a) the fact that the seller pays the tax, not the buyer. b) the degree to which the seller can shift part of the tax to the buyer by charging a higher price. 5. Suppose the government imposes an excise tax on 20 different goods, and in each case requires the seller to pay a tax to the government equal to \$10 for each unit it sells. Among these twenty goods, the seller will pay more of the tax relative to the buyer: a) the more elastic is the demand for the good. b) the less elastic is the demand for the good. 6. In comparing college tuition at the University of Wisconsin between 2005 and 2015, which price is a price adjusted for inflation? a) The nominal price b) The real price 7. George has \$100 in income and the price of Good A is \$10, whereas the price of Good B is \$20. Let Q A be the quantity of Good A that George consumes and let Q B be the quantity of Good B George consumes. Given this information, which of the two combinations below is it possible for George to consume? a) Q A = 6, Q B = 2 b) Q A = 2, Q B = 6 8. George wants to consume some of Good A and some of Good B. A particular indifference curve for George for Good A and Good B represents: a) all the combinations of Good A and Good B at which George would be equally satisfied. b) all the combinations of Good A and Good B that George can afford to consume given his income and the prices of the two goods. 9. Suppose a manufacturer of custom-made canoes has a facility where these canoes are made. The size of the facility is such that six people can work comfortably in the facility and be productive. However, there is room enough in the facility for more than six people to work and adding additional people beyond six does increase production. Therefore, the manufacturer hires more than six people when he needs to produce canoes faster than he can with six people. In fact, hiring a seventh person allows him to increase weekly production of canoes from 100 to 112 per week. In the context of this example, the concept of diminishing marginal returns would predict that hiring an eighth person would: a) cause the total output of canoes per week to fall below 112 canoes. b) allow a further increase in total output of canoes per week, but the increase would be smaller than 12 canoes. 10. In perfect competition each producer can sell the good only: a) at the market price, which means the producer is a price taker. b) by being so competitive that the producer's price is below the market price. 4

5 II. Multiple Choice: (20 3 points each = 60 points) Use the figure below to answer the next THREE (3) questions. This figure depicts the market for a small economy for good X. In this figure the domestic demand and domestic supply curves are linear. 11. If the market represented in the above graph is closed to trade, then the value of consumer surplus is, the value of producer surplus is, and the value of total surplus is. a) \$36; \$18; \$54 b) \$36; \$36; \$72 c) \$24; \$24; \$48 d) \$18; \$18; \$ Suppose this market opens to trade. If this market is open and there is no tariff, then the value of consumer surplus is, the value of producer surplus is, and the value of total surplus is. a) \$34; \$2; \$36 b) \$50; \$4; \$54 c) \$50; \$2; \$52 d) \$18; \$4; \$ Suppose this market opens to trade but at the same time the government imposes a tariff as marked in the graph on this good. Then, the value of consumer surplus is, the value of producer surplus is, and the value of total surplus is. a) \$32; \$16; \$48 b) \$32; \$8; \$40 c) \$64; \$8; \$72 d) \$64; \$4; \$68 5

6 Use the following information to answer the next THREE (3) questions. Donald Zurcher is operating a bus company that is a monopoly in Econtown. Demand for bus trips is given by P = 4 (1/2000)Q, where the price is in dollars and Q is the quantity of bus trips per day. 14. What is the point elasticity of demand for bus trips when P = \$1? a) 1/3 b) -1/2000 c) 2/3 d) What is the equation for the marginal revenue curve for Donald Zurcher s bus company? a) MR = 4 (1/1000)Q b) MR = 4 (1/2000)Q c) MR = 8 (1/1000)Q d) MR = 8 (1/2000)Q 16. Now suppose that Super, a taxi company, increases their prices. Which of the following could Donald Zurcher use to predict the effect of this price increase on the quantity demanded for his company s bus trips? a) The elasticity of demand for bus trips with respect to the price of bus trips. b) The cross-price elasticity of demand for bus trips and taxi rides. c) The income elasticity of demand for bus trips. d) The elasticity of supply of bus trips with respect to the price of bus trips. 6

7 Use the information below to answer the next THREE (3) questions. Consider the market for picture frames that can be described by the following equations where Q is the quantity of picture frames and P is the price per picture frame: Demand for Picture Frames: Q = 10 - (1/4)P Supply of Picture Frames: Q = P Suppose that in this market for picture frames an excise tax of \$5 per picture frame is imposed on producers of these frames. 17. Prior to the imposition of the tax, the total surplus in this market is equal to ; after the imposition of this tax, the total surplus in this market (include the government's share of the surplus as part of the total surplus) is equal to ; and the deadweight loss due to this tax is equal to. a) \$40.00; \$16; \$2.50 b) \$160.00; \$108.00; \$5 c) \$320.00; \$157.20; \$5 d) \$160.00; \$157.50; \$ Given the imposition of this excise tax on picture frames, relative to the initial pre-tax equilibrium price, the price per unit paid by consumers while the net price received by producers. a) increases by \$5; decreases by \$0 b) increases by \$1; decreases by \$4 c) increases by \$4; decreases by \$4 d) increases by \$4; decreases by \$1 19. Suppose that the demand curve is not the one you were provided but is instead a perfectly inelastic demand curve that can be written as: Demand for picture frames: Q = 6 If the government imposes an excise tax of \$5 per picture frame given this demand curve, then the price to consumers once the excise tax is imposed would be, the quantity of picture frames sold would be, and the total tax collected by the government would equal. a) \$11.00; 2; \$8.00 b) \$10.00; 6; \$30.00 c) \$11.00; 6; \$30.00 d) \$16.00; 6; and \$

9 23. When Juanita finished college she took a job in August of 2014 for \$40,000. Her mother told Juanita that she (the mother) took a job when she finished college in 1994, and it paid only \$33,000. She said Juanita was much better off than she (the mother) had been in her first job after college. Juanita had taken economics while she was in college. She told her mother that it wasn t clear who earned more, in real terms, adjusted for inflation. Juanita looked up the CPI for 1994 and 2014, and found it was 180 and 240, respectively. Based on this information which one of the following statements is correct? a) We do not have enough information to convert the mother s salary to its equivalent measured in 2014 dollars. b) Juanita s mother earned \$44,000 expressed in 2014 dollars. c) Juanita s mother earned (\$33,000) * (180/240) * 100%, expressed in 2014 dollars. d) Juanita earned \$33,000 * (180/240) * 100%), expressed in 2014 dollars. 24. In January of 1995 the CPI was 150 and by April 2011 it was 225. By what percentage did prices rise as measured by the CPI between January 1995 and April 2011? a) 1.50% b) 75% c) 33% d) 50% 25. Suppose that Joey's demand for ice cream cones is given by the following equation where P is the price in dollars per ice cream cone and Q is the number of ice cream cones: Q = P Currently the price of an ice cream cone is \$2. Using the arc elasticity formula calculate the price elasticity of demand if the price of an ice cream cone increases by \$1. The price elasticity of demand equals: a) 4. b) 1/4. c) 3. d) 1/3. 9

10 Use the figure below of a firm's cost curves to answer the next TWO (2) questions. In this figure, MC is the marginal cost curve, ATC is the average total cost curve, and AVC is the average variable cost curve. 26. In the above figure, at quantities of output where points on the marginal cost curve lie below points on the average total cost curve, the production of an additional unit of the good: a) increases total cost by less than the average cost per unit. b) increases total cost by more than the average cost per unit. c) reduces total cost. d) reduces fixed cost. 27. Based on the above figure: a) the firm must always operate at the quantity of output at which MC and ATC intersect. b) the firm must always operate at the quantity of output at which MC and AVC intersect. c) the firm s average fixed cost must be declining as the quantity of output increases. d) the firm s total fixed cost increases as the quantity of output increases. 10

11 Use the figure below of a perfectly competitive market and a representative firm in this market to answer the next THREE (3) questions. 28. The firm views its demand curve, d, as horizontal at the market price, because: a) the market demand for this product is perfectly elastic. b) the firm believes the demand for this good is perfectly inelastic. c) the firm is a price-taker, and it behaves as if it can sell as much of the good as it wants without affecting the market price of the good. d) the firm is a price-taker, but the firm believes it will still affect the price of the good if it sells too much of the good. 29. We know that a perfectly competitive firm can vary the amount of output it produces and sells in the market. Given the above graphs, this firm will maximize its profits at: a) q 1 because total revenue will increase more than total cost if the firm increases output by one unit. b) q 2 because at q less than q 2, the firm when it increases output by one unit will raise revenue more than it increases cost, and at q more than q 2, the firm when it increases output by one unit will raise cost more than it increases revenue. c) q 3 because at q less than q 3, the firm when it increases output by one unit will raise revenue more than it increases cost. d) q 3 because the higher the output, the more of the good the firm can sell without lowering the price of the good. 30. A firm maximizing profits in this market will have economic profits in the short run and in the long run of firms will cause the supply curve to shift to the, which will cause economic profits for the firms in the market to go to zero. a) negative; exit; left b) positive; exit; left c) positive; entry; left d) positive; entry; right 11

12 III. PROBLEMS: (2 10 points = 20 points) 1. The market for bananas in a small, closed economy can be described by the following domestic demand and domestic supply curves where P is the price per unit of bananas in dollars and Q is the quantity of bananas in thousands: Domestic Demand: P = Q Domestic Supply: P = Q In the world market for bananas the price is \$40 per unit of bananas. a) (1 Point) Below what price will this country import bananas if it opens its banana market to trade with the rest of the world? Computing the domestic equilibrium: Q = Q gives Q = 6, so P = \$140 Hence at prices below \$140 this economy will import bananas. b) (2 Points) Once this economy opens the banana market to trade how many units will be imported or exported? Give a number and indicate if the economy is importing or exporting. Hint: Provide units of measurement in your answer-and be thoughtful here! Since 40 < 140, the economy will import bananas when it opens this market to trade. To calculate imports first calculate the quantity demanded domestically and the quantity supplied domestically: the difference is the quantity of imports. Substituting P = 40 into domestic demand gives: 40 = Q 10Q = 160 Q D = 16 Substituting P = 40 into supply gives: 40 = Q Q S =1 Hence 15,000 bananas will be imported. c) (3 Points) Suppose the government of this small economy opens the market for bananas to trade but imposes an import quota of 9,000 bananas. What price will bananas sell for in this small economy after the quota has been imposed? Recall how to do this from class and the homework: we need to find the price such that the quantity of imports, i.e. the difference between the quantity demanded and the quantity supplied, is 9. In algebra we are after the P such that Q D - Q S = 9. Begin by rewriting domestic demand and supply to have quantity on the left hand side: Q D = 20 P/10, Q S = P/20 1 Then: 20 P/10 (P/20 1) = 9 (3/20)P = 12 12

13 P = 80 d) (2 points) From class discussion we know that imposition of an import quota in an open market results in deadweight loss. Calculate the value of deadweight loss due to having less efficient domestic producers produce more bananas once this import quota is imposed. Hint: Show your work-be careful to get the right "scale" of units in your final answer. Domestic producers would produce only 1,000 bananas at the world price, whereas with the quota they produce Q S = 80/20 1 = 3 = 3,000 bananas (since Q is in thousands). Hence the bananas in Wisconsin deadweight loss is (1/2)*(80-40)*(3-1)*1000 = (1/2)*(40)*2*1000 = \$40,000 e) (2 points) Instead of using a quota the government could have imposed a tariff. Assuming the government did not impose a quota, fill in the table below. Tariff Imports \$0/unit of bananas 9,000 bananas Since the domestic price increased from \$40 (the world price) per unit of bananas to \$80 per unit of bananas with the import quota, a tariff of \$40 per unit of bananas would achieve the same quantity of imports. A tariff of \$0 per unit of bananas would give the quantity of imports at the world price, i.e. 15,000 bananas. Hence the table should look like this: Tariff \$0/unit of bananas \$40/unit of bananas Imports 15,000 bananas 9,000 bananas 13

14 2. The figure below illustrates the market for widgets, which is initially in an equilibrium with supply given by S SR and demand D. The market for widgets is perfectly competitive and all firms are identical with marginal cost and average total cost as shown in the figure below. Price is in dollars and all quantities are in units of widgets. a) (1 Point) What quantity will each individual firm produce in this market in the initial short-run equilibrium? State which two things the firm is setting equal to each other to maximize profits. Firms maximize profits by setting MR = MC, which is the same as P = MC in perfect competition. From the diagram this means firms choose a quantity of 40 widgets at the initial price of \$10 per widget. b) (1 Point) Suppose in the initial short-run equilibrium there are 10 firms in this market. What is the market quantity (Q e ) in this equilibrium? (40 widgets per firm)*(10 firms) = 400 widgets c) (2 Points) In the initial short-run equilibrium each firm has total revenue of and has total costs of. Show how you found your answers for full credit! The price is \$10 and each firm sells 40 units, so total revenue for each firm is \$400. Since ATC = 9, TC = (40 widgets)(\$9 per widget) = \$360. d) (1 Point) Will firms enter or exit this industry in the long run? Briefly explain how you determined whether there would be long run entry or exit and what will happen to the supply curve in this market in the long run. 14

15 Firms in this market are making profits, since TR > TC. Hence, in the long run other firms will enter the market in order to also make profits. This will shift the market supply curve to the right. e) (1 Point) At the breakeven point for all firms in this market the price is and firms produce a quantity of. Briefly justify your answer. The breakeven point occurs when MC = P = ATC, so it occurs when each firm sells 20 widgets at a price of \$8 per widget. f) (2 Points) Determine the values of each of the following when this market operates in the long run. The market price = The market quantity = The number of firms in the market = The market price will just be the breakeven price, \$8, since that ensures firms make zero profit. From the diagram the market quantity will be 600. Since each firm makes 20 units, there must be 30 firms (600/20 = 30). The market price = \$8 per widget The market quantity = 600 widgets The number of firms in the market = 30 firms g) (2 points) Suppose each firm has an average variable cost equation given by AVC = (1/10)q + 4. Calculate the fixed costs of each firm. Recall that ATC = AVC + AFC. Hence if we know ATC and AVC at a point we can figure out AFC, which will give us FC. You can choose q = 20 widgets or q = 40 widgets: both will work. Let s go with q = 20 widgets, since smaller numbers are easier to work with. Then ATC = \$8/widget from the diagram. AVC = = \$6/widget, so AFC = \$2/widget. Then FC = (\$2/widget)(20 widgets) = \$40. 15

### Economics 101. Version 1

Economics 101 Spring 2018 April 10, 2018 Midterm 2 Name TA Name Discussion Section # Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### Economics 101. Version 1

Economics 101 Fall 2017 November 16, 2017 Midterm 2 Version 1 Name TA Name Discussion Section # Student ID # DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101 Name Fall 2012 TA Name 11/27/2012 Discussion Section # Second Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You

### Economics 101. Version 1

Economics 101 Spring 2018 February 27, 2018 Midterm 1 Name TA Name Discussion Section # Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### Version 1 READ THESE INSTRUCTIONS CAREFULLY. DO NOT BEGIN WORKING UNTIL THE PROCTOR TELLS YOU TO DO SO

Econ 100 Spring 2015 Answers to First Mid-term Date: February 24, 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

### 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

### Economics 101. Tuesday, November 27, 2018 VERSION 1 NO CELL PHONES, CALCULATORS, OR FORMULA SHEETS ARE ALLOWED FOR THIS EXAM.

Economics 101 Fall 2018 Second Midterm Tuesday, November 27, 2018 Name Discussion Section TA Name Student ID VERSION 1 The exam consists of three parts: (1) 9 Binary Choice Questions worth 2 points each

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101/1 Name Fall 2013 TA Name 11/26/13 Discussion Section # Second Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You

### Economics 101 Summer 2016 Second Midterm June 13, 2016

Economics 101 Summer 2016 Second Midterm June 13, 2016 Name This exam consists of three parts: I) ten binary choice questions each worth 2 points for a total of 20 points; II) twenty multiple choice questions

### Economics 101 Fall 2013 Homework 5 Due Tuesday, November 21, 2013

Economics 101 Fall 2013 Homework 5 Due Tuesday, November 21, 2013 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on top of the

### Economics 101. Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101 Fall 2016 October 18, 2016 First Midterm Name TA Name Discussion Section # Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### 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

### 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

### 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

### Economics 101. Version 1

Economics 101 Fall 2017 October 12, 2017 Midterm 1 Name TA Name Discussion Section # Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

### 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

### Economics 101 Fall 2016 Homework #4 Due November 17, 2016

Economics 101 Fall 2016 Homework #4 Due November 17, 2016 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on top of the homework

### Quiz #5 Week 04/12/2009 to 04/18/2009

Quiz #5 Week 04/12/2009 to 04/18/2009 You have 30 minutes to answer the following 17 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

### SUBJ SCORE # Version B: Page 1 of 10. (signature)

SUBJ SCORE # Version B: Page 1 of 10 Economics 001 NAME Professor Levinson GU ID # (9 digits) Midterm #2 Seat 2:00 pm November 6, 2013 DO NOT TURN TO PAGE 2 UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. FOLLOW

### 2. Graphing lines from points and using models to evaluate a policy

Econ 102 Spring 2013 Homework 2 Due February 26, 2014 1. Market Demand and Supply (Hint: this question is a review of material you should have seen and learned in Economics 101.) Suppose the market for

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101 Name Fall 2012 TA Name 10/16/2012 Discussion Section # First Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101/1 Name Fall 2013 TA Name 10/8/13 Discussion Section # First Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even November 14, 2011 FORM 4 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 November 14, 2011 FORM 2 Directions 1. Fill in your scantron with your unique-id and the form number

### 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

### ASSIGNMENT 3 ECON 101 FALL parts 3 marks each plus 1 for name= 100 points Due: Nov 30 in class

ASSIGNMENT 3 ECON 101 FALL 2017 33 parts 3 marks each plus 1 for name= 100 points Due: Nov 30 in class QUESTION 1 The domestic demand curve for portable fans is given by Qd = 5000 100P, where Qd is the

### Final Exam - Solutions

Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam - Solutions You have until 12:30 to complete this exam. Be certain to put your

### Practice Exam 3: S201 Walker Fall with answers to MC

Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility

### SUBJ SCORE # Version A: Page 1 of 13. Economics 001 NAME Professor Levinson Final Exam December 13, 2013

SUJ SCORE # Version : Page 1 of 13 Economics 001 NME Professor Levinson GU ID # Final Exam December 13, 2013 DO NOT EGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. RED THESE INSTRUCTIONS FIRST. 1.

### 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

### 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

### Answer all the following questions:-

Answer all the following questions:- QUESTION ONE / TRUE ( ) OR FALSE (X) / (10 MARKS) 1. Total revenue = price x sold quantity. 2. The purpose of a production function is to tell us just how much output

### 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

### Q K L MPL APL FC VC TC AFC AVC ATC MC \$ \$ \$40 \$ \$550 \$10

Economics 101 Spring 2018 Answers to Homework #5 Due Thursday, May 3, 2018 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name, and section number on

### c) Will the monopolist described in (b) earn positive, negative, or zero economic profits? Explain your answer.

Economics 101 Summer 2015 Answers to Homework #4b Due Tuesday June 16, 2015 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name and section number on

### 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

### 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.

### 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

### 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

### 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

### 2. What is Taylor s marginal utility per dollar spent on the 2 nd race? a. 2 b. 3 c. 4 d. 5

ECON 251 Practice questions based on Spring 2013 Exam 2 Taylor has \$100 to spend on playing golf and running in races. The price of a round of golf is \$20 and the price of running a race is \$10. The total

### Perfect competition: occurs when none of the individual market participants (ie buyers or sellers) can influence the price of the product.

Perfect Competition In this section of work and the next one we derive the equilibrium positions of firms in order to determine whether or not it is profitable for a firm to produce and, if so, what quantities

### 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.

### Chapter Summary and Learning Objectives

CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect

### 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.

### 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

### Chapter 1- Introduction

Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and

### Ecn Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam You have until 12:30 to complete this exam. Be certain to put your name, id number

### INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION

ECO105 (F) / Page 1 of 12 Section A INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION Instructions: This section consists

### 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.

### ECON 200. Introduction to Microeconomics

ECON 200. Introduction to Microeconomics Homework 5 Part II Name: [Multiple Choice] 1. A firm is a natural monopoly if it exhibits the following as its output increases: (d) a. decreasing marginal revenue

### Test 3 Econ 3144 Fall 2010 Dr. Rupp 31 Multiple Choice Questions Signature I have neither given nor received aid on this exam

Test 3 Econ 3144 Name Fall 2010 Dr. Rupp 31 Multiple Choice Questions Signature I have neither given nor received aid on this exam Use the following information to answer questions 1-4. A DVD making monopolist

### ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

Name Seat Assignment ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION November 17, 2009 FORM 4. Directions 1. FILL IN YOUR SCANTRON WITH YOUR UNIQUE ID AND THE FORM NUMBER LISTED ON THIS

### ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

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

### 4. Which of the following statements about marginal revenue for a perfectly competitive firm is incorrect? A) TR

Name: Date: 1. Which of the following will not be true of a perfectly competitive market? A) Buyers and sellers will have an imperceptible effect on the market. B) Firms can freely enter and exit the market.

### 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,

### Gregory Clark Econ 1A, Fall 2000 FINAL VERSION #1. A total of 100 points are possible. Last Name: First Name:

Gregory Clark Econ 1A, Fall 2000 FINAL VERSION #1 A total of 100 points are possible. Last Name: First Name: Your Student ID Number: - - Part A: Multiple Choice Questions (20 questions, each of which is

### 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

### This exam contains 15 pages (including this cover page) and 17 questions. Check to see if any pages are missing.

ECON 001 Fall 2016 Final Exam December 21, 2016 Time Limit: 120 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 15 pages (including this cover page) and 17 questions. Check to

### 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

### 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

### 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

### 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

### FIRMS IN COMPETITIVE MARKETS

14 FIRMS IN COMPETITIVE MARKETS WHAT S NEW IN THE FOURTH EDITION: The rules for profit maximization are written more clearly. LEARNING OBJECTIVES: By the end of this chapter, students should understand:

### ECON 251 Final Exam Fall 2012

ECON 251 Final Exam Fall 2012 1. Emily is thinking of going shopping on Black Friday for a Nook Tablet. Emily values the Nook Tablet at \$200. She sees in an advertisement that the Nook Tablet is on sale

### MIDTERM II. GROUP A Instructions: December 18, 2013

EC101 Sections 03 Fall 2013 NAME: ID #: SECTION: MIDTERM II December 18, 2013 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. The exam consists of 30 multiple

### 2000 AP Microeconomics Exam Answers

2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift

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

### This exam contains 13 pages (including this cover page) and 17 questions. Check to see if any pages are missing.

ECON 001 Fall 2016 Final Exam December 21, 2016 Time Limit: 120 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 13 pages (including this cover page) and 17 questions. Check to

### 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).

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO READ THESE INSTRUCTIONS FIRST.

Economics 102 Name Spring 2013 TA Name 2/20/2013 Discussion Section # First Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO READ THESE INSTRUCTIONS FIRST. You

### 3) a) List and describe the characteristics of a perfectly competitive market.

Exercises on Perfect Competition 1) When a firm has no ability to influence market prices it is said to be in what kind of a market? 2) In a competitive market, how will the actions of any single buyer

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2015 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, 2015 FORM 3 Directions 1. Fill in your scantron with your unique-id and the form number

### 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

### 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

### 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

### Economics 101 Fall 2017 Answers to Homework 5 Due:12/12/17

Economics 101 Fall 2017 Answers to Homework 5 Due:12/12/17 Directions: The homework will be collected in a box before the lecture. Please place your name, TA name, and section number on top of the homework

### This exam contains 14 pages (including this cover page) and 17 questions. Check to see if any pages are missing.

ECON 1 Fall 217 Final Exam December 18, 217 Time Limit: 12 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 14 pages (including this cover page) and 17 questions. Check to see if

### Midterm 2 Sample Questions. Use the demand curve diagram below to answer the following THREE questions.

! Midterm 2 Sample uestions Use the demand curve diagram below to answer the following THREE questions. 8 6 4 2 4 8 12 16 1. What is the own-price elasticity of demand as price decreases from 6 per unit

### Quiz #4 Week 04/05/2009 to 04/11/2009

Quiz #4 Week 04/05/2009 to 04/11/2009 You have 30 minutes to answer the following 15 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your

### Economics 102 Summer 2018 First Midterm June 7, 2018

Economics 102 Summer 2018 First Midterm June 7, 2018 Name This exam consists of three parts: I) five binary choice questions worth 2 points each; II) twenty multiple choice questions worth 3 points each;

### 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

### 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

### 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

### Pledge (sign) I did not copy another student s answers

Economics 4020 Dr. Rupp Test #1 Fri. Sept 23 rd, 2011 20 Multiple Choice questions (2.5 points each) Pledge (sign) I did not copy another student s answers 1. The profit maximization rule for a firm is

### 2007 Thomson South-Western

WHAT IS A COMPETITIVE MARKET? A competitive market has many buyers and sellers trading identical products so that each buyer and seller is a price taker. Buyers and sellers must accept the price determined

### 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

### 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

### Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1

Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1 Chronological order of topics covered in class (to the best of my memory). Introduction to Microeconomics (Chapter 1) What is

### 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

### Principles of Microeconomics ECONOMICS 103. Topic 8: Imperfect Competition. Single price monopoly. Monopolistic competition.

ECONOMICS 103 Topic 8: Imperfect Competition Single price monopoly. Monopolistic competition. 1 COMPETITIVE MARKETS V MONOPOLY Thus far, all firms have been price takers. - Markets are characterized by

### 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

### ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION

YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS SECOND MIDTERM EXAMINATION Prof. Bill Even April 20, 2016 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number listed

### ECO201: PRINCIPLES OF MICROECONOMICS. Second Midterm Examination Prof. Bill Even

YOUR NAME (please print) Row Number for Regular Day of Class (1 is front row). ECO201: PRINCIPLES OF MICROECONOMICS Second Midterm Examination Prof. Bill Even November 14, 2018 FORM 1 Directions 1. Be

### DO NOT BEGIN WORKING UNTIL YOU ARE TOLD TO DO SO. READ THESE INSTRUCTIONS FIRST.

Final Exam; Page 1 of 18 Economics 101 Professor Wallace Final Exam, Version #1 December 21 st, 2005. DO NOT BEGIN WORKING UNTIL YOU ARE TOLD TO DO SO. READ THESE INSTRUCTIONS FIRST. You have 120 minutes

### DO NOT BEGIN WORKING UNTIL YOU ARE TOLD TO DO SO. READ THESE INSTRUCTIONS FIRST.

Final Exam; Page 1 of 18 Economics 101 Professor Wallace Final Exam, Version #2 December 21 st, 2005. DO NOT BEGIN WORKING UNTIL YOU ARE TOLD TO DO SO. READ THESE INSTRUCTIONS FIRST. You have 120 minutes

### Economics 101 Midterm Exam #2. April 9, Instructions

Economics 101 Spring 2009 Professor Wallace Economics 101 Midterm Exam #2 April 9, 2009 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do not