ECO100Y5 Study Guide - Midterm Guide: Deadweight Loss, Allocative Efficiency, Pareto Efficiency

• School: UTM
• Department: Economics
• Course: ECO100Y5
• Professor: Michael H O

Document Summary

Do not use red-coloured pen (this colour is reserved for the markers) and you cannot appeal any part of your answer if it is done in pencil (except the graphs). You must show the step-by-step calculations in every part of question 1 or a zero will be given. You must relate your explanation in question 2 to your graph for full marks. Only put your answers in the designated page(s) or space. Do not separate any page from this test or a 10-mark penalty will be imposed. Suppose canada only produces two goods ( and ). The prices these goods and the quantities produced for the period 2011-2013 are listed in the table below. Calculate the nominal and the percentage change in nominal . (10 marks) Nominal (value of output calculated with current prices and current quantities): 2012 to 2013: [( ) ] . (b)