Exam 1. ECON 101 Fall 2013 Vesselinov
|
|
- Angela Willa Ross
- 7 years ago
- Views:
Transcription
1 Class: Date: Exam 1. ECON 101 Fall 2013 Vesselinov Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In a competitive market, the quantity of a product produced and the price of the product are determined by a. sellers. b. both buyers and sellers. c. buyers. d. None of the above is correct. Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. 2. Refer to Figure 8-8. The tax causes consumer surplus to decrease by the area a. B+C. b. A+B+C. c. A+B+C+D+F. d. A. 3. Refer to Figure 8-8. The deadweight loss of the tax is the area a. B+D. b. B+C+D+F. c. A+C+F+J. d. C+F. 1
2 4. When a tax is placed on the buyers of lemonade, the a. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal. b. burden of the tax will be always be equally divided between the buyers and the sellers. c. buyers bear the entire burden of the tax. d. sellers bear the entire burden of the tax. Figure 3-4 Perry s Production Possibilities Frontier Jordan s Production Possibilities Frontier 5. Refer to Figure 3-4. If Perry and Jordan both spend all of their time writing poems, then total production is a. 24 poems. b. 3 poems. c. 6 poems. d. 12 poems. 6. Refer to Figure 3-4. Jordan should specialize in the production of a. neither good. b. novels. c. both goods. d. poems. 2
3 Figure Refer to Figure 6-5. If the horizontal solid line on the graph represents a price ceiling, then the price ceiling is a. not binding, and there will be no surplus or shortage of the good. b. not binding but creates a surplus of 40 units of the good. c. binding and creates a surplus of 40 units of the good. d. binding and creates a surplus of 90 units of the good. Figure Refer to Figure At a price of $35, there would be a a. surplus of 600 units. b. shortage of 400 units. c. surplus of 200 units. d. surplus of 400 units. 3
4 Figure Refer to Figure 2-5. If this economy is efficient, it could produce a. 240 sweaters and 75 soccer balls. b. 100 sweaters and 100 soccer balls. c. 300 sweaters and 200 soccer balls. d. 150 sweaters and 100 soccer balls. 10. Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point C is a. 200 soccer balls. b. 300 sweaters. c. 125 soccer balls. d. 75 soccer balls. 11. Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is a. inelastic and equal to b. elastic and equal to c. inelastic and equal to d. elastic and equal to
5 Figure Refer to Figure If the price were P1, producer surplus would be represented by the area a. D+H+F+G+I. b. F+G. c. D+H+F. d. F. 13. Two goods are complements when a decrease in the price of one good a. increases the demand for the other good. b. decreases the quantity demanded of the other good. c. does not change the quantity demanded of the other good. d. decreases the demand for the other good. 14. If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the a. consumer has consumer surplus of $2 if he or she buys the good. b. price of the good will fall due to market forces. c. consumer does not purchase the good. d. market is not a competitive market. 5
6 Figure Refer to Figure At equilibrium, total surplus is measured by the area a. CFG. b. AFG. c. KBG. d. ACG. 16. For a good that is a necessity, demand a. cannot be represented by a demand curve in the usual way. b. tends to be inelastic. c. has unit elasticity. d. tends to be elastic. 17. Alexandra created a new software program she is willing to sell for $300. She sells her first copy and enjoys a producer surplus of $250. What is the price paid for the software? a. $300. b. $250. c. $50. d. $550. 6
7 Figure 9-1 The figure illustrates the market for wool in Scotland. 18. Refer to Figure 9-1. When international trade in wool is allowed, consumer surplus in Scotland a. increases by the area C + F. b. decreases by the area D + G. c. increases by the area B + D. d. decreases by the area B + D. 19. Refer to Figure 9-1. With trade, Scotland will a. export 11 units of wool. b. export 5 units of wool. c. import 6 units of wool. d. import 15 units of wool. 7
8 Figure Refer to Figure Over which range is the supply curve in this figure the most elastic? a. $220 to $430 b. $16 to $40 c. $100 to $220 d. $40 to $100 8
9 Figure 2-9 Panel (a) Panel (b) 21. Refer to Figure 2-9, Panel (a). Production at point B is a. impossible and inefficient. b. impossible but efficient. c. possible and efficient. d. possible but inefficient. 22. When small changes in price lead to infinite changes in quantity demanded, demand is perfectly a. inelastic, and the demand curve will be vertical. b. inelastic, and the demand curve will be horizontal. c. elastic, and the demand curve will be vertical. d. elastic, and the demand curve will be horizontal. 9
10 Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed to Make 1 Unit of Number of Units Produced in 40 Hours Cheese Bread Cheese Bread England Spain Refer to Table 3-5. England has a comparative advantage in the production of a. neither good and Spain has a comparative advantage in the production of both goods. b. both goods and Spain has a comparative advantage in the production of neither good. c. bread and Spain has a comparative advantage in the production of cheese. d. cheese and Spain has a comparative advantage in the production of bread. Figure Refer to Figure 6-9. At which price would a price floor be nonbinding? a. $7 b. $6 c. $5 d. $8 10
11 Figure 9-3. The domestic country is China. 25. Refer to Figure 9-3. With trade, China will a. export 150 pencil sharpeners. b. import 250 pencil sharpeners. c. export 250 pencil sharpeners. d. import 100 pencil sharpeners. Figure Refer to Figure 6-6. If the government imposes a price ceiling of $8 on this market, then there will be a. no shortage. b. a shortage of 40 units. c. a shortage of 20 units. d. a shortage of 10 units. 11
12 27. The world price of a simple electronic calculator is $5.00. Before Zimbabwe allowed trade in calculators, the price of a calculator there was $7.50. Once Zimbabwe began allowing trade in calculators with other countries, Zimbabwe began a. exporting calculators and the price of a calculator in Zimbabwe remained at $7.50. b. importing calculators and the price of a calculator in Zimbabwe decreased to $5.00. c. importing calculators and the price of a calculator in Zimbabwe remained at $7.50. d. exporting calculators and the price of a calculator in Zimbabwe decreased to $ Sellers of a product will bear the larger part of the tax burden, and buyers will bear a smaller part of the tax burden, when the a. tax is placed on the sellers of the product. b. supply of the product is more elastic than the demand for the product. c. demand for the product is more elastic than the supply of the product. d. tax is placed on the buyers of the product. Table 3-8 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Needed to Make 1 Quantity Produced in 36 Hours Parasol Plate Parasol Plate Huang Min Refer to Table 3-8. Huang has an absolute advantage in the production of a. parasols and a comparative advantage in the production of plates. b. parasols and a comparative advantage in the production of parasols. c. neither good and a comparative advantage in the production of parasols. d. neither good and a comparative advantage in the production of plates. 30. The size of the deadweight loss generated from a tax is affected by the a. elasticity of supply only. b. elasticities of both supply and demand. c. elasticity of demand only. d. total revenue collected by the government. 31. The law of supply states that, other things equal, an increase in a. price causes quantity supplied to increase. b. quantity supplied causes price to increase. c. price causes quantity supplied to decrease. d. quantity supplied causes price to decrease. 12
13 Figure Refer to Figure 2-4. Efficient production is represented by which point(s)? a. V, Y, Z b. V c. Y, Z d. W, Y, Z 13
PAGE 1. Econ 2113 - Test 2 Fall 2003 Dr. Rupp. Multiple Choice. 1. The price elasticity of demand measures
PAGE 1 Econ 2113 - Test 2 Fall 2003 Dr. Rupp Multiple Choice 1. The price elasticity of demand measures a. how responsive buyers are to a change in income. b. how responsive sellers are to a change in
More informationProblems: Table 1: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2
Problems: Table 1: Labor Hours needed to make one Amount produced in 90 hours: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2 1. Refer to Table 1. For Carolyn, the opportunity cost of 1
More informationA. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.
1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change
More informationMICROECONOMIC PRINCIPLES SPRING 2001 MIDTERM ONE -- Answers. February 16, 2001. Table One Labor Hours Needed to Make 1 Pounds Produced in 20 Hours
MICROECONOMIC PRINCIPLES SPRING 1 MIDTERM ONE -- Answers February 1, 1 Multiple Choice. ( points each) Circle the correct response and write one or two sentences to explain your choice. Use graphs as appropriate.
More informationSUPPLY AND DEMAND : HOW MARKETS WORK
SUPPLY AND DEMAND : HOW MARKETS WORK Chapter 4 : The Market Forces of and and demand are the two words that economists use most often. and demand are the forces that make market economies work. Modern
More informationEcon 202 Exam 2 Practice Problems
Econ 202 Exam 2 Practice Problems Principles of Microeconomics Dr. Phillip Miller Multiple Choice Identify the choice that best completes the statement or answers the question. Chapter 6 1. If a binding
More informationDemand and Supply Examples
and Examples Review Price Floors and Ceilings keep market price from allocating scarce goods. Using demand and supply to predict changes in prices and quantities. Shifts in the demand schedule Shifts in
More informationPrinciple of Microeconomics Econ 202-506 chapter 6
Principle of Microeconomics Econ 202-506 chapter 6 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The buyers pay the entire sales tax levied on
More informationPractice Questions Week 3 Day 1
Practice Questions Week 3 Day 1 Figure 4-1 Quantity Demanded $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8 Price Per Pair Quantity Supplied 1. Figure 4-1 shows the supply and demand for socks. If a price
More information6. Which of the following is likely to be the price elasticity of demand for food? a. 5.2 b. 2.6 c. 1.8 d. 0.3
Exercise 2 Multiple Choice Questions. Choose the best answer. 1. If a change in the price of a good causes no change in total revenue a. the demand for the good must be elastic. b. the demand for the good
More information6. In general, over longer periods, demand tends to become (A) More elastic (B) Perfectly elastic (C) Perfectly inelastic (D) Less elastic
5. The demand for a good is said to be inelastic if (A) More units will be purchased if price increases (B) The percentage change in quantity demanded is greater than the percentage in price (C) The demand
More informationBPE_MIC1 Microeconomics 1 Fall Semester 2011
Masaryk University - Brno Department of Economics Faculty of Economics and Administration BPE_MIC1 Microeconomics 1 Fall Semester 2011 Final Exam - 05.12.2011, 9:00-10:30 a.m. Test A Guidelines and Rules:
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) It is efficient to produce an additional shirt if A) the marginal benefit of producing the shirt
More information4. According to the graph, assume that Cliff and Paul were both producing wheat and corn, and each were dividing their time equally between the two. T
1. Your professor loves his work, teaching economics. He has been offered other positions in the corporate world making 25 percent more, but has decided to stay in teaching. His decision would not change
More informationChapter 8 Application: The Costs of Taxation
Chapter 8 Application: The Costs of Taxation Review Questions What three factors must be taken into account in order to fully understand the effect of taxes on economic well-being? ANSWER: In order to
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 6 - Markets in Action - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The short-run impact of the San Francisco earthquake
More informationEconomic Efficiency, Government Price Setting, and Taxes
CHAPTER 4 Economic Efficiency, Government Price Setting, and Taxes Modified by: Changwoo Nam 1 Economic Efficiency, Government Price Setting, and Taxes A legally determined maximum price that sellers may
More informationChapter 6 Supply, Demand, and Government Policies
Chapter 6 Supply, Demand, and Government Policies Review Questions Using supply-demand diagrams, show the difference between a non-binding price ceiling and a binding price ceiling in the wheat market.
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The law of demand states that, other things remaining the same, the lower the price of a good,
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 11 Monopoly practice Davidson spring2007 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopoly industry is characterized by 1) A)
More informationQuantity Tax Incidence Subsidy Welfare Effects Case Study. Equilibrium Chapter 16
Equilibrium Chapter 16 Competitive Equilibrium: Motivating Questions Firms are price-takers in competitive markets, but how is the market price (and quantity) determined? competitive equilibrium What happens
More informationMidterm Exam #2. ECON 101, Section 2 summer 2004 Ying Gao. 1. Print your name and student ID number at the top of this cover sheet.
NAME: STUDENT ID: Midterm Exam #2 ECON 101, Section 2 summer 2004 Ying Gao Instructions Please read carefully! 1. Print your name and student ID number at the top of this cover sheet. 2. Check that your
More informationChapter 03 The Concept of Elasticity and Consumer and
Chapter 03 The Concept of Elasticity and Consumer and Multiple Choice Questions Use the following Figure 3.1 to answer questions 1-4: Figure 3.1 1. In Figure 3.1, if demand is considered perfectly elastic,
More informationChapter 3. The Concept of Elasticity and Consumer and Producer Surplus. Chapter Objectives. Chapter Outline
Chapter 3 The Concept of Elasticity and Consumer and roducer Surplus Chapter Objectives After reading this chapter you should be able to Understand that elasticity, the responsiveness of quantity to changes
More informationJacob: If there is a tax, there is a dead weight loss; why do we speak of a social gain?
Microeconomics, sales taxes, final exam practice problems (The attached PDF file has better formatting.) *Question 1.1: Social Gain Suppose the government levies a sales tax on a good. With the sales tax,
More information1. If the price elasticity of demand for a good is.75, the demand for the good can be described as: A) normal. B) elastic. C) inferior. D) inelastic.
Chapter 20: Demand and Supply: Elasticities and Applications Extra Multiple Choice Questions for Review 1. If the price elasticity of demand for a good is.75, the demand for the good can be described as:
More informationPractice Exam 1. 1. Economics is the study of choice under conditions of a. demand b. supply c. scarcity d. opportunity e.
Practice Exam 1 1. Economics is the study of choice under conditions of a. demand b. supply c. scarcity d. opportunity e. abundance 2. Suppose your friends take you out for dinner on your birthday and
More informationMonopolistic Competition
In this chapter, look for the answers to these questions: How is similar to perfect? How is it similar to monopoly? How do ally competitive firms choose price and? Do they earn economic profit? In what
More informationECON 103, 2008-2 ANSWERS TO HOME WORK ASSIGNMENTS
ECON 103, 2008-2 ANSWERS TO HOME WORK ASSIGNMENTS Due the Week of June 23 Chapter 8 WRITE [4] Use the demand schedule that follows to calculate total revenue and marginal revenue at each quantity. Plot
More informationMarket is a network of dealings between buyers and sellers.
Market is a network of dealings between buyers and sellers. Market is the characteristic phenomenon of economic life and the constitution of markets and market prices is the central problem of Economics.
More informationPre Test Chapter 3. 8.. DVD players and DVDs are: A. complementary goods. B. substitute goods. C. independent goods. D. inferior goods.
1. Graphically, the market demand curve is: A. steeper than any individual demand curve that is part of it. B. greater than the sum of the individual demand curves. C. the horizontal sum of individual
More informationDemand, Supply and Elasticity
Demand, Supply and Elasticity CHAPTER 2 OUTLINE 2.1 Demand and Supply Definitions, Determinants and Disturbances 2.2 The Market Mechanism 2.3 Changes in Market Equilibrium 2.4 Elasticities of Supply and
More informationThe formula to measure the rice elastici coefficient is Percentage change in quantity demanded E= Percentage change in price
a CHAPTER 6: ELASTICITY, CONSUMER SURPLUS, AND PRODUCER SURPLUS Introduction Consumer responses to changes in prices, incomes, and prices of related products can be explained by the concept of elasticity.
More informationCHAPTER 5 WORKING WITH SUPPLY AND DEMAND Microeconomics in Context (Goodwin, et al.), 2 nd Edition
CHAPTER 5 WORKING WITH SUPPLY AND DEMAND Microeconomics in Context (Goodwin, et al.), 2 nd Edition Chapter Overview This chapter continues dealing with the demand and supply curves we learned about in
More informationChapter 3 Market Demand, Supply, and Elasticity
Chapter 3 Market Demand, Supply, and Elasticity After reading chapter 3, MARKET DEMAND, SUPPLY, AND ELASTICITY, you should be able to: Discuss the Law of Demand and draw a Demand Curve. Distinguish between
More informationElasticity: The Responsiveness of Demand and Supply
Chapter 6 Elasticity: The Responsiveness of Demand and Supply Chapter Outline 61 LEARNING OBJECTIVE 61 The Price Elasticity of Demand and Its Measurement Learning Objective 1 Define the price elasticity
More informationDemand. See the Practical #4A Help Sheet for instructions and examples on graphing a demand schedule.
Demand Definition of Demand: Demand is a relation that shows the quantities that buyers are willing and able to purchase at alternative prices during a given time period, all other things remaining the
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MBA 640 Survey of Microeconomics Fall 2006, Quiz 6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopoly is best defined as a firm that
More informationAdvanced International Economics Prof. Yamin Ahmad ECON 758
Advanced International Economics Prof. Yamin Ahmad ECON 758 Sample Midterm Exam Name Id # Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the
More informationGov t Intervention: Price Floors & Price Ceilings / Taxes & Subsidies
Gov t Intervention: Price Floors & Price Ceilings / Taxes & Subsidies Price Floor: Regulated price, cannot charge below this price. A price floor will be binding if it is set above the true equilibrium
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron.
Principles of Microeconomics Fall 2007, Quiz #6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron. 1) A monopoly is
More informationEcon 201 Final Exam. Douglas, Fall 2007 Version A Special Codes 00000. PLEDGE: I have neither given nor received unauthorized help on this exam.
, Fall 2007 Version A Special Codes 00000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 201 Final Exam 1. For a profit-maximizing monopolist, a. MR
More informationLong Run Supply and the Analysis of Competitive Markets. 1 Long Run Competitive Equilibrium
Long Run Competitive Equilibrium. rinciples of Microeconomics, Fall 7 Chia-Hui Chen October 9, 7 Lecture 6 Long Run Supply and the Analysis of Competitive Markets Outline. Chap 8: Long Run Equilibrium.
More informationECON 1100 Global Economics (Fall 2013) Surplus, Efficiency, and Deadweight Loss
ECON 11 Global Economics (Fall 213) Surplus, Efficiency, and Deadweight Loss Relevant Readings from the Required Textbooks: Economics Chapter 5, Surplus, Efficiency, and Deadweight Loss Definitions and
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 11 Perfect Competition - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Perfect competition is an industry with A) a
More informationAn increase in the number of students attending college. shifts to the left. An increase in the wage rate of refinery workers.
1. Which of the following would shift the demand curve for new textbooks to the right? a. A fall in the price of paper used in publishing texts. b. A fall in the price of equivalent used text books. c.
More information1. 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. Market is a group of buyers and sellers of a particular good or service. P. 66. b. These individuals
More information4 THE MARKET FORCES OF SUPPLY AND DEMAND
4 THE MARKET FORCES OF SUPPLY AND DEMAND IN THIS CHAPTER YOU WILL Learn what a competitive market is Examine what determines the demand for a good in a competitive market Chapter Overview Examine what
More informationEconomics 101 Midterm Exam #1. February 26, 2009. Instructions
Economics 101 Spring 2009 Professor Wallace Economics 101 Midterm Exam #1 February 26, 2009 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do
More informationSupply and Demand Fundamental tool of economic analysis Used to discuss unemployment, value of $, protection of the environment, etc.
Supply and emand Fundamental tool of economic analysis Used to discuss unemployment, value of $, protection of the environment, etc. Chapter Outline: (a) emand is the consumer side of the market. (b) Supply
More informationELASTICITY Microeconomics in Context (Goodwin, et al.), 3 rd Edition
Chapter 4 ELASTICITY Microeconomics in Context (Goodwin, et al.), 3 rd Edition Chapter Overview This chapter continues dealing with the demand and supply curves we learned about in Chapter 3. You will
More informationEcon 2113 Test #1A Pledge: I have neither given or received aid on this exam. Signature:
Econ 2113 Test #1A Dr. Rupp Fall 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 or
More informationHow To Calculate Profit Maximization In A Competitive Dairy Firm
Microeconomic FRQ s 2005 1. Bestmilk, a typical profit-maximizing dairy firm, is operating in a constant-cost, perfectly competitive industry that is in long-run equilibrium. a. Draw correctly-labeled
More informationPractice Multiple Choice Questions Answers are bolded. Explanations to come soon!!
Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!! For more, please visit: http://courses.missouristate.edu/reedolsen/courses/eco165/qeq.htm Market Equilibrium and Applications
More informationChoose the single best answer for each question. Do all of your scratch work in the margins or in the blank space on the last page.
Econ 101, Section 1, F09, Schroeter Final Exam, Red Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space on the last page. 1. Pete receives
More informationChapter 27: Taxation. 27.1: Introduction. 27.2: The Two Prices with a Tax. 27.2: The Pre-Tax Position
Chapter 27: Taxation 27.1: Introduction We consider the effect of taxation on some good on the market for that good. We ask the questions: who pays the tax? what effect does it have on the equilibrium
More informationChapter 3 Market Demand, Supply and Elasticity
Chapter 3 Market Demand, Supply and Elasticity Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. Ceteris paribus means (a) other things
More informationReview Question - Chapter 7. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Review Question - Chapter 7 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) International trade arises from A) the advantage of execution. B) absolute
More information14 : Elasticity of Supply
14 : Elasticity of Supply 1 Recap from Session Budget line and Consumer equilibrium Law of Equi Marginal utility Price, income and substitution effect Consumer Surplus Session Outline Elasticity of Supply
More informationSupply and Demand. A market is a group of buyers and sellers of a particular good or service.
Supply and Demand A market is a group of buyers and sellers of a particular good or service. The definition of the good is a matter of judgement: Should different locations entail different goods (and
More informationEcon 101: Principles of Microeconomics
Econ 101: Principles of Microeconomics Chapter 7: Taxes Fall 2010 Herriges (ISU) Ch. 7: Taxes Fall 2010 1 / 25 Outline 1 The Excise Tax 2 The Benefits and Costs of Taxation 3 Tax Fairness versus Tax Efficiency
More informationTheoretical Tools of Public Economics. Part-2
Theoretical Tools of Public Economics Part-2 Previous Lecture Definitions and Properties Utility functions Marginal utility: positive (negative) if x is a good ( bad ) Diminishing marginal utility Indifferences
More informationSuppose you are a seller with cost 13 who must pay a sales tax of 15. What is the lowest price you can sell at and not lose money?
Experiment 3 Suppose that sellers pay a tax of 15. If a seller with cost 5 sells to a buyer with value 45 at a price of 25, the seller earns a profit of and the buyer earns a profit of. Suppose you are
More information3) The excess supply curve of a product we (H) import from foreign countries (F) increases as B) excess demand of country F increases.
International Economics, 8e (Krugman) Chapter 8 The Instruments of Trade Policy 8.1 Basic Tariff Analysis 1) Specific tariffs are A) import taxes stated in specific legal statutes. B) import taxes calculated
More informationPrinciples of Economics: Micro: Exam #2: Chapters 1-10 Page 1 of 9
Principles of Economics: Micro: Exam #2: Chapters 1-10 Page 1 of 9 print name on the line above as your signature INSTRUCTIONS: 1. This Exam #2 must be completed within the allocated time (i.e., between
More informationI. Introduction to Taxation
University of Pacific-Economics 53 Lecture Notes #17 I. Introduction to Taxation Government plays an important role in most modern economies. In the United States, the role of the government extends from
More informationKOÇ UNIVERSITY ECON 321 - INTERNATIONAL TRADE
KOÇ UNIVERSITY ECON 321 - INTERNATIONAL TRADE Mid-term Exam (100 points; 90 minutes) Answer all 5 questions. In providing answers to the questions in this section algebra or graphs might be helpful. State
More informationChapter 6. Elasticity: The Responsiveness of Demand and Supply
Chapter 6. Elasticity: The Responsiveness of Demand and Supply Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 202 504 Principles of Microeconomics Elasticity Demand curve:
More informationDemand, Supply, and Market Equilibrium
3 Demand, Supply, and Market Equilibrium The price of vanilla is bouncing. A kilogram (2.2 pounds) of vanilla beans sold for $50 in 2000, but by 2003 the price had risen to $500 per kilogram. The price
More informationInterdependence and the Gains from Trade
CHAPTER 3 Interdependence and the Gains from Trade Goals in this chapter you will Consider how everyone can benefit when people trade with one another Learn the meaning of absolute advantage and comparative
More informationEconomics 100 Exam 2
Name: 1. During the long run: Economics 100 Exam 2 A. Output is limited because of the law of diminishing returns B. The scale of operations cannot be changed C. The firm must decide how to use the current
More informationMidterm Exam - Answers. November 3, 2005
Page 1 of 10 November 3, 2005 Answer in blue book. Use the point values as a guide to how extensively you should answer each question, and budget your time accordingly. 1. (8 points) A friend, upon learning
More informationChapter 6 Competitive Markets
Chapter 6 Competitive Markets After reading Chapter 6, COMPETITIVE MARKETS, you should be able to: List and explain the characteristics of Perfect Competition and Monopolistic Competition Explain why a
More informationMassachusetts Institute of Technology Department of Economics. 14.01 Principles of Microeconomics Exam 2 Tuesday, November 6th, 2007
Page 1 of 8 Massachusetts Institute of Technology Department of Economics 14.01 Principles of Microeconomics Exam Tuesday, November 6th, 007 Last Name (Please print): First Name: MIT ID Number: Instructions.
More information17. Suppose demand is given by Q d = 400 15P + I, where Q d is quantity demanded, P is. I = 100, equilibrium quantity is A) 15 B) 20 C) 25 D) 30
Ch. 2 1. A relationship that shows the quantity of goods that consumers are willing to buy at different prices is the A) elasticity B) market demand curve C) market supply curve D) market equilibrium 2.
More informationOVERVIEW. 2. If demand is vertical, demand is perfectly inelastic. Every change in price brings no change in quantity.
7 PRICE ELASTICITY OVERVIEW 1. The elasticity of demand measures the responsiveness of 1 the buyer to a change in price. The coefficient of price elasticity is the percentage change in quantity divided
More informationEcon 201 Exam 1 F2002 Professor Phil Miller Name: Student Number:
Econ 201 Exam 1 F2002 Professor Phil Miller Name: Student Number: Multiple Choice (3 points each) Directions: Identify the letter of the choice that best completes the statement or answers the question.
More informationFigure 4-1 Price Quantity Quantity Per Pair Demanded Supplied $ 2 18 3 $ 4 14 4 $ 6 10 5 $ 8 6 6 $10 2 8
Econ 101 Summer 2005 In-class Assignment 2 & HW3 MULTIPLE CHOICE 1. A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good. a.
More informationMarket Structure: Perfect Competition and Monopoly
WSG8 7/7/03 4:34 PM Page 113 8 Market Structure: Perfect Competition and Monopoly OVERVIEW One of the most important decisions made by a manager is how to price the firm s product. If the firm is a profit
More informationLABOR UNIONS. Appendix. Key Concepts
Appendix LABOR UNION Key Concepts Market Power in the Labor Market A labor union is an organized group of workers that aims to increase wages and influence other job conditions. Craft union a group of
More informationa. Meaning: The amount (as a percentage of total) that quantity demanded changes as price changes. b. Factors that make demand more price elastic
Things to know about elasticity. 1. Price elasticity of demand a. Meaning: The amount (as a percentage of total) that quantity demanded changes as price changes. b. Factors that make demand more price
More information2011 Pearson Education. Elasticities of Demand and Supply: Today add elasticity and slope, cross elasticities
2011 Pearson Education Elasticities of Demand and Supply: Today add elasticity and slope, cross elasticities What Determines Elasticity? Influences on the price elasticity of demand fall into two categories:
More informationchapter >> Consumer and Producer Surplus Section 4: Applying Consumer and Producer Surplus: The Efficiency Costs of a Tax
chapter 6 >> Consumer and Producer urplus ection 4: Applying Consumer and Producer urplus: The fficiency Costs of a Tax The concepts of consumer and producer surplus are extremely useful in many economic
More informationMassachusetts Institute of Technology Department of Economics. 14.01 Principles of Microeconomics Exam 2 Tuesday, November 6th, 2007
Page 1 of 18 Massachusetts Institute of Technology Department of Economics 14.01 Principles of Microeconomics Exam 2 Tuesday, November 6th, 2007 Last Name (Please print): First Name: MIT ID Number: Instructions.
More informationKnowledge Enrichment Seminar for Senior Secondary Economics Curriculum. Macroeconomics Series (3): Extension of trade theory
Knowledge Enrichment Seminar for Senior Secondary Economics Curriculum Macroeconomics Series (3): Extension of trade theory by Dr. Charles Kwong School of Arts and Social Sciences The Open University of
More informationFinal Exam (Version 1) Answers
Final Exam Economics 101 Fall 2003 Wallace Final Exam (Version 1) Answers 1. The marginal revenue product equals A) total revenue divided by total product (output). B) marginal revenue divided by marginal
More informationElasticity. Ratio of Percentage Changes. Elasticity and Its Application. Price Elasticity of Demand. Price Elasticity of Demand. Elasticity...
Elasticity and Its Application Chapter 5 All rights reserved. Copyright 21 by Harcourt, Inc. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department,
More informationDEMAND AND SUPPLY. Chapter. Markets and Prices. Demand. C) the price of a hot dog minus the price of a hamburger.
Chapter 3 DEMAND AND SUPPLY Markets and Prices Topic: Price and Opportunity Cost 1) A relative price is A) the slope of the demand curve B) the difference between one price and another C) the slope of
More informationChapter 14 Monopoly. 14.1 Monopoly and How It Arises
Chapter 14 Monopoly 14.1 Monopoly and How It Arises 1) One of the requirements for a monopoly is that A) products are high priced. B) there are several close substitutes for the product. C) there is a
More informationElasticity and Its Application
Elasticity and Its Application Chapter 5 All rights reserved. Copyright 2001 by Harcourt, Inc. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department,
More informationQuantity of trips supplied (millions)
Taxes chapter: 7 1. The United tates imposes an excise tax on the sale of domestic airline tickets. Let s assume that in 2010 the total excise tax was $6.10 per airline ticket (consisting of the $3.60
More informationNon Sequitur by Wiley Miller
SUPPLY & DEMAND Non Sequitur by Wiley Miller Graph Basics Movement change along the curve Shift the curve moves Increase to the right Decrease to the left Intersection of curves Price Label: both axis,
More information5. Suppose demand is perfectly elastic, and the supply of the good in question
ECON 1620 Basic Economics Principles 2010 2011 2 nd Semester Mid term test (1) : 40 multiple choice questions Time allowed : 60 minutes 1. When demand is inelastic the price elasticity of demand is (A)
More informationPractice Questions Week 8 Day 1
Practice Questions Week 8 Day 1 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The characteristics of a market that influence the behavior of market participants
More informationTax, Subsidy, and General Equilibrium
Tax. rinciples of Microeconomics, Fall hia-hui hen October, Lecture Tax, ubsidy, and General Equilibrium Outline. hap : Tax. hap : ubsidy. hap : General Equilibrium. hap : Exchange Economy Tax Government
More informationMicroeconomics Topic 3: Understand how various factors shift supply or demand and understand the consequences for equilibrium price and quantity.
Microeconomics Topic 3: Understand how various factors shift supply or demand and understand the consequences for equilibrium price and quantity. Reference: Gregory Mankiw s rinciples of Microeconomics,
More informationAGEC 105 Spring 2016 Homework 7. 1. Consider a monopolist that faces the demand curve given in the following table.
AGEC 105 Spring 2016 Homework 7 1. Consider a monopolist that faces the demand curve given in the following table. a. Fill in the table by calculating total revenue and marginal revenue at each price.
More information14.01 Fall 2010 Problem Set 1 Solutions
14.01 Fall 2010 Problem Set 1 Solutions 1. (25 points) For each of the following scenarios, use a supply and demand diagram to illustrate the effect of the given shock on the equilibrium price and quantity
More informationPre-Test Chapter 21 ed17
Pre-Test Chapter 21 ed17 Multiple Choice Questions 1. Which of the following is not a basic characteristic of pure competition? A. considerable nonprice competition B. no barriers to the entry or exodus
More informationFinal Exam Microeconomics Fall 2009 Key
Final Exam Microeconomics Fall 2009 Key On your Scantron card, place: 1) your name, 2) the time and day your class meets, 3) the number of your test (it is found written in ink--the upper right-hand corner
More information