ECN 110 : M TB Sample Questions Ch 7.pdf
16 Oct 2014
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Multiple choice identify the choice that best completes the statement or answers the question. ___: to what does normative analysis refers, what is, what should be, what maximizes efficiency, what is politically correct. ___: suppose there is an early freeze in california that ruins the lemon crop. It increases: it decreases, it increases very briefly, then decreases. It is not affected by this change in market forces. At the price of p 1, what is consumer surplus: a, a + b, a + b + c, a + b + d. It increases by an amount equal to a: it decreases by an amount equal to b + c. It increases by an amount equal to b + c: it decreases by an amount equal to c. What does area c represent? the decrease in consumer surplus that results from a downward-sloping demand curve: consumer surplus to new consumers who enter the market when the price falls from p2 to.
