ECO 201 Midterm: ECO 201 Miami U e201sp17mt2Fall 1 with key
1
YOUR NAME _____________________________________________ Assigned Seat __________
IF YOU ARE NOT SEATED IN YOUR ASSIGNED SEAT OR TAKE AN EXAM WITHOUT YOUR
INITIALS LISTED ON THE EXAM, YOU WILL RECEIVE A GRADE OF ZERO ON THE EXAM.
ECO201: PRINCIPLES OF MICROECONOMICS
Second MIDTERM EXAMINATION
Prof. Bill Even
April 17, 2017
FORM 1
Directions
1. Fill in your scantron with your unique-id and the form number listed on this page. Proper completion of this step
of the directions is worth the equivalent of one question.
2. There are 45 multiple choice questions. All answers should be recorded on the scantron sheet. No credit will be
given for answers placed elsewhere. Record your answers on the exam as well because this will be the record of your
answers which you can use to determine which questions you got right or wrong.
3. A calculator is allowed. Cell phones, watches, and any other electronic devices are prohibited. Access to any
electronic device other than a calculator (including a smart watch) will be treated as a case of academic dishonesty.
4. You have until the end of the class period to finish the exam and complete the scantron. Additional time may be
purchased at a price of 5 percentage points per minute.
2
To answer the next 3 questions, consider the market for copper described below.
1) Suppose that initially the U.S. is not allowed to import or export copper. If trade is now permitted and the
world price of copper is $55, the U.S. would
a. import 1,000 pounds of copper daily
b. import 2,000 pounds of copper daily
c. export 1,000 tons of copper daily
d. none of the above
2) Suppose that initially, the world price of copper is $55 and the U.S. did not allow trade. If trade is allowed, U.S.
copper buyers would be
a. better off by $17,500 daily
b. better off by $20,000 daily
c. worse off by $17,500 daily
d. none of the above.
3) Suppose that initially, the world price of copper is $55 and the U.S. did not allow trade. If trade is allowed, U.S.
copper producers would be
a. better off by $22,500 daily
b. better off by $17,500 daily
c. worse off by $17,500 daily
d. none of the above.
3
To answer the next 3 questions, consider the market for copper described below.
4) Suppose that the world price of copper is $40 and there is free trade in copper market. If the U.S. government
imposes a $5 tariff on every pound of copper, U.S. imports of copper would decrease by _____ daily and the
government would collect _____ in tax revenue daily.
a. 1,000; $5,000 b. 2,000; $10,000 c. 1,000; $10,000 d. none of the above.
5) Suppose that the world price of copper is $40 and there is free trade in copper market. If the U.S. government
imposes a $5 tariff on every pound of copper, U.S. copper buyers would be made worse off by _____ daily and U.S.
copper sellers would be made better off by ______ daily.
a. $25,000; $10,000
b. $27,500; $12,500
c. $25,000; $12,500
d. none of the above.
6) Suppose that the world price of copper is $40 and there is free trade in copper market. If the U.S. government
imposes a $5 tariff on every pound of copper, the daily deadweight loss from the tariff would be:
a. $2,500
b. $5,000
c. $7,500
d. none of the above.
Document Summary
If you are not seated in your assigned seat or take an exam without your. Initials listed on the exam, you will receive a grade of zero on the exam. Directions: fill in your scantron with your unique-id and the form number listed on this page. Proper completion of this step of the directions is worth the equivalent of one question: there are 45 multiple choice questions. All answers should be recorded on the scantron sheet. No credit will be given for answers placed elsewhere. Record your answers on the exam as well because this will be the record of your answers which you can use to determine which questions you got right or wrong: a calculator is allowed. Cell phones, watches, and any other electronic devices are prohibited. Additional time may be purchased at a price of 5 percentage points per minute.
