ECO370Y5 Lecture Notes - Lecture 1: Marginal Revenue, Diminishing Returns

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Published on 30 Apr 2020
School
Department
Course
Professor
Final Exam
Econ 2106
Prof. Banzhaf
Spring
201I
N^
, A-tl!
YJ
Q
rQ
The
exam has three
sections worth a
total of 200
points.
You have 150 minutes to complete the exam.
Good
luck!
GSU
Honor
Code:
As members
of
the academic
community. students are expected to recognize and uphold standards of intellectual
and
academic integrity. The University
assunles as a basic and minimum standard of conduct
in
academic matters that students
be
honest
and
that
they submit
for
credit only
the
products
of
their own efforts. Both the
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of scholarship
and the
need for
fairness require
that all dishonest
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as a
basis
for academic
credit.
They also require that students refrain
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and all
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Examinations. Cheating on examinations involves
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Examples
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during an
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(unless
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I
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I. Multiple
Choice.
3
points
each. Fill
your
answer in
the blank.
BI . The phrase
"gains
from
trade"
refers
to
the:
A) profits
obtained from
sales
of a
good
or
service.
B) increase in
total output that is realized
when individuals
specialize in particular
tasks
and
trade
with each
other.
C) gains
that
one obtains by
taking
advantage of an
uninformed
buyer and selling at a
higher
than
average
price.
D) gains
that
one obtains by
taking
advantage of a temporary discount
or
"sale" price.
11
9- 2. The price
of a
gallon
of
gasoline
increases
l0%
this
year.
As
a
result,
which
of the
following
events is most
likely
to occur?
A) More people
will
drive
their
cars.
B) Public
transportation
usage will
decrease.
C) Gasoline
expenditures will
increase if
gasoline
is
an
inelastic good.
D) Fewer
people
will ride bicycles,
a substitute for
car travel.
r
\--: If
the
opportunity
cost of manufacturing
automobiles
is
higher
in the
United States
than in Britain
and
the opportunitl,cost
of
manufacturing
airplanes is lower
in
the
United
States than
in Britain.
then the
United
States
will:
A) export
both
airplanes and
automobiles
to Britain.
B) irnport
both airplanes and
autornobiles
ttom Britain.
C) export airplanes
to Britain
and
import
automobiles
fiom Britain.
D) import
airplanes
fiom
Britain
and
exporl automobiles
to Britain.
n
'J-4. Deadweight
losses
arising from
the
presence
of an excise
tax are
greatest
when
demand:
A) and
supply are
relatively
inelastic.
B) is
relatively
inelastic
and supply
is
relatively
elastic
C) is
relatively
elastic
and supply is
relatively inelastic.
D) and
supply are relatively
elastic.
'l
rrltlt:
llutrgor
I nd
l.'rirlrtt
s
llickcr
l}trttgor l ri'*ht't's llotrgor' l.'rirlru's
A
t+
| \ 5.
(Table:
Bongos
and Frisbees)
Bill
and Mickey
make
bongos
and
Frisbees.
Who
should specialize
in the
production
of bongos?
A) Biil
B) Mickey
C) both
D) neither
Iritl
lil + l.+
r) i ll
$610
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c
1)
6. Consumer
surplus
is
represented
by
the
Price.
A) above;below
B) above;
above
C) below;
above
D) below;below
A)
B)
c)
D)
9.
A)
B)
c)
D)
t0.
A)
B)
c)
D)
the
demand
curve
and
the
area
7. When
the
minimum
wage
lncreases:
A) unemployment
among
skilled
workers
decreases'
A; fe*"i *orkers
are
willing
to
work
"off the
books'"
C) employment
of
unskilled
workers
increases'
Oi ,n.mptoyment
among
unskilled
workers
increases'
t\--
Suppose
the
state
of
oklahoma
decides
to
produce
only
two
goods-oil
and
football
helmets.
According
to
the
production
possibility
tiontier,
as
oil
production
increases'
the
production
of
football
helmets
will:
increase.
not
change.
decrease
at
a decreasing
rate'
decrease.
Rent
controls
set
a
price ceiling
below
the
equilibrium
price and
therefore:
quantity
supplied
exceeds
the
quantity
demanded'
quantity
deinanded
exceeds
the
quantity
supplied'
a
surplus
of
rental
units
will
result'
all
low-income
recipients
will
obviously
and
clearly
be
helped'
The
NFL
wants
to
give
the
"common
fan"
the
opportunity
to
attend
the
Super
Borvl'
so
it sets
Super
Uowl
frices
"low"-tickets
for
a regular
seat
at
Super
Borvl
XXXVII
.ostlust
$400.
scalpeis,
however.
were
selling
tickets
ror
!1,]!o or
more.
The
true
cost
to
the
..common
fan''
of
a
regular
ticket
to
Super
Bowl
XXXVII
was:
$400.
$
1,500.
the
monetary
price
paid to obtain
the
ticket'
$
I
,
I 00
less
than
the
opportunity
cost
of
a
ticket'
tI
I L Which
of
the
following
is
a
key
factor
in
the
effectiveness
of
well-functioning
markets?
A) Outcomes
which
are
equitable
for
consumers
and
producers
B) The
role
of
gou"rnr.ni
to
deliver
economic
signals
to consumers
and
producers
Ci n signifi.unl
d.gr.. of
government
intervention
to
maximize
efficiency
ni Voui
right
to
ur"
und
diipose
of
your
private
property
as
you
see
fit
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