|
|
|
secondmidtermafternoonspring2019versiononewithanswers.pdf
secondmidtermafternoonspring2019versiononewithanswers.pdf
Showing 9-12 out of 20
secondmidtermafternoonspring2019versiononewithansw...
secondmidtermafternoonspring2019versiononewithanswers.pdf-Economics 101 Name _____________________________ Spring 2019
secondmidtermafternoonspring2019ver...
secondmidtermafternoonspring2019versiononewithanswers.pdf-Economics 101 Name _____________________________ Spring 2019
Page 9
9
Use the following information to answer the next TWO (2) questions.
Consider the market for kiwis in the small open economy of Aussieland. This market is
characterized by the following, where Q is quantity of kiwis, and P is the price of a unit of kiwis
in dollars:
Domestic Demand: P = 1,000
–
(1/2)Q
Domestic Supply: P = 2Q
World Price = $100
12. What is the quantity of kiwis that will be imported or exported into Aussieland when the
market for kiwis is completely open to trade in Aussieland?
a.
350 kiwis will be imported.
b.
1750 kiwis will be exported.
c.
1400 kiwis will be imported.
d.
700 kiwis will be imported.
13. Suppose now that Aussieland
’s dictator has a vested interest in the domestic
kiwi market and
decides to impose an import quota of 250 kiwis. What is the deadweight loss associated with this
policy?
a.
$400,000
b.
$180,000
c.
$720,000
d.
$450,000
Page 10
10
Use the following information to answer the next TWO (2) questions.
Yuchi has $30 available to spend on hamburgers (H) and chips (C). The price of a hamburger is
$6 and the price of a package of chips is $3.
Yuchi
’s Utility Funct
ion: U= 3*(H)*(C)
Marginal Utility of Hamburgers = 3*(C)
Marginal Utility of Chips = 3*(H)
14. Given this information and holding everything else constant, what it the maximum utility that
Yuchi can have from hamburgers and chips?
a. Utility = 13.5 utils
b. Utility = 24 utils
c. Utility = 36 utils
d. Utility = 37.5 utils
15. Suppose
Yuchi’s income increases to $45
. Given this information and holding everything
else constant, are hamburgers and chips normal or inferior goods for Yuchi?
a. hamburger is an inferior good and chips are a normal good
b. hamburger is a normal good and chips are an inferior good
c. both goods are normal goods
d. both goods are inferior goods
16. (Just two choices here!) Which of the following statements is true?
a.
Trade is beneficial since trade increases total surplus.
b.
Open trade is always
beneficial to domestic consumers.
Page 11
11
(This page is intentionally left blank as an extra work sheet.)
DO NOT DETACH THIS SHEET FROM THIS EXAM BOOKLET! EXAM
CONTINUES ON NEXT PAGE
Page 12
12
17. Consider a specific market in a small economy where the domestic equilibrium price for the
good is greater than the world price for that good. Suppose the small economy is debating three
policies with regard to this specific market:
(1) opening this market to trade while simultaneously implementing either an import
quota or tariff on this good,
(2) keeping this market completely closed from trade, and
(3) completely opening this market to trade with no implemented quotas or tariffs.
Which of the following statements is true? (Note: (1) > (2) > (3) means policy (1) is the most
preferred, policy (2) is the second-most preferred, and policy (3) is the least-preferred.)
a.
Consumers prefer (1) > (2) > (3). Producers prefer (3) > (2) > (1).
b.
Consumers prefer (3) > (1) > (2). Producers prefer (2) > (1) > (3).
c.
Consumers prefer (1) > (3) > (2). Producers prefer (2) > (3) > (1).
d.
Consumers prefer (2) > (3) > (1). Producers prefer (1) > (3) > (2).
18. In the market for calendars the demand curve is given by the following equation where P is
the price in dollars and Q is the quantity of calendars:
Market Demand Curve: P = 2100
–
(1/28)Q
Suppose the goal of the firm providing calendars to this market is to maximize their revenue.
Then given this information and holding everything else constant, this firm should produce:
a. (1050)(28) calendars.
b. 1050 calendars.
c. 28 calendars.
d. (75)(1050) calendars.
19. Suzy reports that she prefers football to baseball and baseball to soccer. Then she tells us that
she prefers soccer to football. Given this information and holding everything else constant,
Suzy's preferences are:
a. logically consistent.
b. inconsistent.
c. easily represented by normal indifference curves.
d. best captured by the way we draw her budget line.
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
University of Wisconsin-M...
University_of_Wisconsin-Madison
School:
INTRODUCTORY_MICROECONOMICS
Course:
Related Topics:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more
Students also viewed documents
lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106
