m3ts08_a_clean - Economics 200 Spring, 2008 M. Stegeman...

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Economics 200 Spring, 2008 M. Stegeman EXAMINATION #3 Form A Instructions: On your opscan form, mark your ID NUMBER, your NAME, and the test FORM. If your ID number begins with “S,” then the “S” should be included and marked as “0" Also, write your assigned SEAT NUMBER (e.g. Left G2) in the blank space provided for your phone number. (We don’t want your phone number.) Since a wrong answer has the same impact on your score as no answer, you should answer every question. You may keep the question sheet, but TURN IN THE MAP with your scantron and SIGN IT. If you have any questions, ask now, not after the exam is over! There are 40 questions and 3 bonus questions. Each question is worth 2.5 points. 1. Suppose that you must divide $1,000 among 10 students. Which divisions are efficient? (A) Any division of the money is efficient. (B) The efficient division is to give each student $100. (C) The efficient division is to give all of the money to one student. (D) The efficient division is to divide the money so that each student is equally happy. 2. In the Microsoft antitrust case, the Justice Department accused Microsoft of forcing consumers to buy Internet Explorer whenever they bought Windows 97, by bundling them together as a package. This would be an example of: (A) Tying. (B) Price fixing. (C) Price discrimination. (D) Product discrimination. 3. If an individual supplier in a market has the capacity to affect the market price, then: (A) The supply curve is horizontal. (B) The demand curve becomes more elastic. (C) The supply curve may have the "wrong" slope. (D) The underlying premise of the supply curve is violated. (E) The process of adjustment to the equilibrium price may be slower. 4. Economists sometimes say that the market equilibrium (of a competitive market) produces an "efficient" outcome. When they say this, they mean that the market equilibrium: (A) Minimizes the price. (B) Maximizes total surplus. (C) Maximizes sellers’ surplus. (D) Maximizes buyers’ surplus. (E) Equalizes buyers’ and sellers’ surplus.
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5. Suppose that the marginal product of labor exceeds the marginal product of land, for a corn farmer. This means that: (A) Land is cheaper than labor. (B) Labor is cheaper than land. (C) The market for corn is out of equilibrium. (D) To improve technical efficiency, the farmer should be using more labor and less land. (E) To improve technical efficiency, the farmer should be using more land and less labor. (AB) To increase output, it is better to add one more unit of labor than one more unit of land. (AC) To increase output, it is better to add one more unit of land than one more unit of labor. 6. If someone believes that property rights should be protected, and no one should be forced to share their property with others, then the best word to describe her economic philosophy is: (A) Socialist. (B)
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This note was uploaded on 01/31/2009 for the course ECON 200 taught by Professor Cramer during the Spring '07 term at University of Arizona- Tucson.

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m3ts08_a_clean - Economics 200 Spring, 2008 M. Stegeman...

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