Quiz
Micro Final Practice (Exam 2 Questions)
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Questions in this quiz (30)
1FYI: The vertical distance between Points A and B represents a tax in the market.
The loss of producer surplus for those sellers of the good who continue to sell it after the tax is imposed is...
- A$3
- B$0
- C$2
- D$1
2The minimum wage, if it is binding, lowers the incomes of...
- Aonly those workers who become unemployed.
- Bonly those workers who have jobs.
- Cno workers.
- Dall workers.
3Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 4 if the price is...
- A$860
- B$1,400
- C$1,050
- D$1,650
4Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000. Michael's consumer surplus is...
- A$500
- B$3,500
- C$3,000
- D$6,500
5Each additional unit of the good that is produced yields an external...
- Abenefit of $36
- Bcost of $15
- Ccost of $36
- Dbenefit of $15
6Sellers will be unwilling to sell more than...
- A2 units of the good if its price is below $450.
- B1 unit of the good if its price is below $200.
- C3 units of the good if its price is below $700.
- DAll of the answers are correct.
7Suppose that the production of plastic creates a social cost which is depicted in the graph shown here. Without any government regulation, how much plastic will be produced?
- A650
- B200
- C500
- D900
8A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?
- AA) For some customers, the toll was more than the opportunity cost of the time they would have spent in traffic.
- BB) For some customers, the toll was less than the opportunity cost of the time they would have spent in traffic.
- CC) No customers would find this tolls worth the time saved in traffic.
- DBoth A and B are correct.
9If a sawmill creates too much noise for local residents,...
- Anoise restrictions will force residents to move out of the area.
- Bthe government can raise economic well-being through noise-control regulations.
- Ca sense of social responsibility will cause owners of the mill to reduce noise levels.
- Dthe government should avoid intervening because the market will allocate resources efficiently.
10An overcrowd beach is an example of...
- Aa positive externality.
- Ban economically unfair allocation of resources.
- Can environmentally inefficient allocation of resources.
- Da Tragedy of the Commons.
11FYI: The vertical distance between Points A and C represents a tax in the market.
The amount of the tax on each unit of the good is...
- AP3 - P2
- BP2 - P1
- CP3 - P1
- DP4 - P3
12Which area represents the INCREASE in producer surplus when the price rises from P1 to P2?
- AABGD
- BAHGB
- CACH
- DBCG
13Demand is said to be price elastic if...
- Abuyers respond substantially to changes in the price of the good.
- Bbuyers do not respond much to changes in the price of the good.
- Cdemand shifts substantially when income or the expected future price of the good changes.
- Dthe price of the good responds substantially to changes in demand.
14If a consumer places a value of $20 on a particular good and if the price of the good is $25, then the...
- Aprice of the good will rise due to market forces.
- Bconsumer has consumer surplus of $5 if he buys the good.
- Cmarket is out of equilibrium.
- Dconsumer does not purchase the good.
15If the price of the good is $150, then consumer surplus amounts to...
- A$250
- B$200
- C$300
- D$150
16If the government imposes a price ceiling of $2 on this market, then there will be...
- Ano shortage of the good.
- Ba shortage of 30 units of the good.
- Ca shortage of 20 units of the good.
- Da shortage of 10 units of the good.
17A tax levied on the buyers of a good shifts the...
- Ademand curve upward (or to the right).
- Bsupply curve downward (or to the right).
- Cdemand curve downward (or to the left).
- Dsupply curve upward (or to the left).
18Relative to a situation in which gasoline is not taxed, the imposition of a tax on gasoline causes the quantity of gasoline demanded to...
- Aincrease and the quantity of gasoline supplied to increase.
- Bincrease and the quantity of gasoline supplied to decrease.
- Cdecrease and the quantity of gasoline supplied to decrease.
- Ddecrease and the quantity of gasoline supplied to increase.
19For a price floor to be binding in this market, it would have to be set at...
- Aa price between $2 and $3.
- Ba price between $3 and $4.
- Cany price above $3.
- Dany price below $3.
20Suppose a price ceiling of $5 is imposed on this market. As a result,...
- Athe quantity of the good supplied decreases by 20 units.
- Bthe demand curve shifts to the left; quantity sold is now 30 units and the price is $5.
- Cthe price of the good continues to serve as the rationing mechanism.
- Dbuyers' total expenditure on the good decreases by $80.
21If the price of the product is $130, then who would be willing to purchase the product?
- ACalvin, Sam, and Andrew
- BCalvin and Sam
- CCalvin
- DCalvin, Sam, Andrew, and Lori
22Suppose your own demand curve for tomatoes slopes downward. Suppose also that, for the last tomato you bought this week, you paid a price exactly equal to your willingness to pay. Then...
- Ayou already have bought too many tomatoes this week.
- Byou should buy more tomatoes before the end of the week.
- Cyour consumer surplus on all of the tomatoes you have bought this week is zero.
- Dyour consumer surplus on the last tomato you bought is zero.
23Erin would be willing to pay as much as $100 per week to have her house cleaned. Ernesto's opportunity cost of cleaning Erin's house is $70 per week.
If Erin pays Ernesto $90 to clean her house, Erin's consumer surplus is...- A$10
- B$80
- C$30
- D$20
24A supply curve can be used to measure producer surplus because it reflects...
- Athe actions of sellers.
- Bsellers' costs.
- Cthe amount that will be purchased by consumers in the market.
- Dquantity supplied.
25Which area represents consumer surplus at a price of P1?
- AABC
- BABDG
- CAFG
- DBDF
26The vertical distance between points A and B represents a tax in the market.
The per-unit burden of the tax on buyers is...
- A$5
- B$8
- C$3
- D$4
27If demand is price inelastic, then...
- Abuyers do not respond much to a change in price.
- Bbuyers do not alter their quantities demanded much in response to advertising, fads, or general changes in tastes.
- Cbuyers respond substantially to a change in price, but the response in very slow.
- Dthe demand curve is very flat.
28If the supply curve is S', the demand curve is D, and the equilibrium price is $150, what is the producer surplus?
- A$625
- B$5,000
- C$2,500
- D$1,250
29Jeff decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700. How much did Jeff pay for his computer?
- A$3,700
- B$3,000
- C$700
- D$2,300
30Corrective taxes that are imposed upon the producer of a nasty smell can be successful in reducing that smell because the tax makes the producer...
- Ainternalize the positive externality.
- Binternalize the negative externality.
- Cexternalize the positive externality.
- Dexternalize the negative externality.
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- Description
- Practice quiz for the final. only includes exam 2 questions.
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- tran.melissa2015
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- English
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