AGB312 wint00 midterm1 - Name I l Mid-Term#1 January 25...

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Unformatted text preview: Name: I l Mid-Term #1 January 25', 2000 AGB 312-02 Winter 2000 Prof. MacDougall Directions: Read through the entire test before doing any writing. Ifthere is anything unclear in the wording of a question be sure to ask me about it. I have left room below each question for - you to write your answer. Ifyou need more room then use the back of any of the pages but be sure to indicate which problem IS being continued on the back page. At the end of each problem I have noted the number of pomts that the problem IS worth— obviously, you want to put more effort into those problems which are worth more points than those which are worth less. The test is worth 100 points. Remember to check your work. Good luck. “Heyi That’s milk! And you said you were all empty. you stinkin' liar!" AGB 312 IMid-Term #1 I Winter 2000 -1- I. Name: Definitions Define the two terms below. Each definition is worth five (5) points. ‘ . h 4. Market failure . wMQ—WWPMM/‘idfl; r94. WWBW'Wd/miiw ‘ meme“ wmm WWWW 5. Public good ~11, 0"; WWW i2 , M WW a, wwwmww AGB 312 I Mid-Term #1 I Winter 2000 .2- II. Name: True/False Indicate whether the statement is true or false. No explanation is required Each problem is worth three (3) points. 1. 10. T The chf'ce of goals is influenced primarily by a person’s beliefs and financial status. Goals, lues, and beliefs change frequently as different problems or circumstances arise. ' T . WWesources are not allocated in society’s best interest, it is an economic failure. F . , I i The fallacy of composition refers to the pursuit of group goals that result in making indivicgs within the group worse off. T Propert rights, which are embedded in the Constitution, are absolute. T Resources that are often considered renewable may be nonrenewable in a limited time perio T The lue of producer surplus includes the value of the inputs used in production. fig F A policy change that does not satisfy'the Compensation Principle can satisfy the rule for a Pareto improvement. T G) Thwue of consumer surplus can take into account the effects of an externality. F According to the 19th Amendment of the US. Constitution, states have a right to prohibit the imwation of intoxicating liquors into the state. T AGB 312 IMidoTerm #1 I Winter 2000 A , I?) Name: III. Miscellaneous 1. Match the terms on the left with the appropriate terms on the right. [4 points] /Flow resource _ Renewable resource Non-exhaustible resource Nonrenewable resourc Stock resource Exhaustible resource 2. Choose the best answer for the following question: [3 points] A farmer enters into a new agricultriral market because of positive profits. - According to the fallacy of composition, what should this farmer expect to happen to prices? (a) Prices will continue to rise indefinitely because only efficient farmers will enter into t- e market. .‘ 'ces Will Tell because other people will enter e m- ' . '- - - existing production, thus shitting the supply curve to the lefi. (e) None of the above A68 312 IMid-Term #1 I Winter 2000 .4- Name: '3. Using the graph below: (8.) Determine the before and after equilibrium prices and quantities (the dotted line indicates the “afier”); [4 points] . (b) Calculate the before and after Consumer Surplus (CS) by calculating the areas ofthe CS. [10 points] AGE 3 12 I Mid-Term #1 I Winter 2000 -5- Name: 4. Put the following terms in'their'appropriate places in the figure below [Note: Only three boxes need to be filled]: - - 3. Fact [2 points] b. Policy Position ' [2 points] 0. Belief [2 points] AGB 312 {Mid-Term #1 [Winter 2000 .5- Name: IV. Article-based Question Using the article on the Nipomo school issue (“School site opposed by area farmers”, SLO Telegram-Tribune, July 4, 1998), answer the following questions: 1. List one Belief for the Nipomo School Board side and justify why it is a belief. [6 points] MW mmmwm Mame-MWIOL (W159‘ WW.% out, wees—w, W 751W ,\ 9192M” hm W m 4m, . W J M ma W (1.. Wm ham/fl be; 2. List one Value for the Nursery side and justify why it is a value. [6 points] Vie/(LL W med-18’ ' QW‘CHQEM‘ , Wild 1924 um 39mm MIDLMW 3. What is the extemality involved in this issue, making sure to justify why it an externality. [8 points] AGB 3 12 i Mid-Term #1 I Whiter 2000 .7- ...
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  • Spring '99
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