EC | 101 | Introductory Microeconomic an...
EC | 101 | Introductory Microeconomic analysis | exam |EC101 DD/EE Midterm 2 November 9, 2021 Version C Name (last, first): |__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__| Student ID: |U |__|__|__|__|__|__|__|__| Discussion Section: |__|__| Signature____________________________________ p. 1 v. C EC101 DD/EE F21 Midterm 2 INSTRUCTIONS: Take out your pencils and yo
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EC | 101 | Introductory Microeconom...
EC | 101 | Introductory Microeconomic analysis | exam |EC101 DD/EE Midterm 2 November 9, 2021 Version C Name (last, first): |__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__|__| Student ID: |U |__|__|__|__|__|__|__|__| Discussion Section: |__|__| Signature____________________________________ p. 1 v. C EC101 DD/EE F21 Midterm 2 INSTRUCTIONS: Take out your pencils and yo
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Scenario RNO.
The graph below shows supply and
demand in a perfectly competitive market for widgets.
Suppose that the government decides to impose a \$3
excise tax on widgets.
13.
See Figure RNO.
The quantity of widgets purchased
after the tax is imposed is
a.
40.
b.
30.
c.
15.
d.
20.
14.
See Figure RNO.
The part of the tax paid by sellers is
a.
\$2 per unit.
b.
\$1.50 per unit.
c.
\$1 per unit.
d.
The answer depends on who sends the tax to
the government.
15.
See Figure RNO.
How much tax revenue is generated
in the market for widgets?
a.
\$125.
b.
\$75
c.
\$60
d.
the seller sends the tax to the government.
16.
without cleaning it up.
The trash doesn’t bother her at
all, but you would be willing to pay \$40 to live in a
clean room. Her opportunity cost of cleaning the trash
would be \$60, but yours would be only \$50. Which is
an economically efficient way of handling the trash
problem?
a.
You offer to pay her \$70 to clean up the trash.
b.
You leave a dead mouse in her bed as
punishment for her behavior.
c.
You clean up the trash yourself.
d.
You do nothing and live with the trash.
Table JEX.
Each of the following sellers can produce
one
fancy dress at the cost listed below. The market
price of a fancy dress is \$1,100.
Seller
Cost
Abby
\$1,400
Bobby
\$1,200
Carlos
\$1,000
Dianne
\$750
Evalina
\$500
17.
See Table JEX
. The combined total production cost
of all dresses sold is
a.
\$3,600.
b.
\$2,250.
c.
\$2,600.
d.
\$1,250.
18.
Table JEX
. Producer surplus in the market is
a.
\$3,600.
b.
\$2,250.
c.
\$1,050.
d.
\$ 950.
19.
Since air pollution imposes a negative externality on
society, governments should
a.
tax pollution at the highest rate that doesn’t
cause firms to shut down in the long run.
b.
make pollution illegal.
c.
give firms an incentive to abate pollution when
abatement costs are low.
d.
do nothing and allow the market to determine
the level of pollution.
20.
Suppose there are binding rent controls in the market
for apartments. Then,
a.
the efficient number of apartments will be
rented.
b.
those willing to pay the most will get the
apartments.
c.
some apartment residents will pay lower rents
than they would pay without controls.
d.
more apartments will be rented and occupied
than without rent control.
21.
An economics professor spends \$180 for a ticket to
the Mozart opera
Così
Fan Tutte
. But after 30
minutes, she decides that the music hurts her ears. She
would rather be home working on her research
project.
If she is economically rational, she should
a.
stay there, because \$180 did not exceed her
entertainment budget.
b.
stay there, because \$180 was an avoidable cost.
c.
stay there in order to avoid losing consumer
surplus.
d.
go home and work on her research.

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