sample%20exam%202%20Wi08

sample%20exam%202%20Wi08 - Economics 200 Professor Mumy...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 200 Professor Mumy Sample Exam #2 (Illustrates types of questions, but does not imply the exact coverage of Exam 2) 1. There is a deadweight loss if the last unit produced has a A) marginal benefit greater than its marginal cost. B) marginal cost greater than its marginal benefit. C) marginal benefit equal to its marginal cost. D) marginal cost greater than its marginal benefit or marginal benefit greater than its marginal cost. 2) Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals A) $0. B) $1. C) $2. D) $3. 3) According to the total revenue test, a price decrease will increase total revenue if demand is A) inelastic. B) perfectly inelastic. C) elastic. D) unit elastic. 4) The more elastic the demand for a good, the A) less a sales tax will lower its price. B) more a sales tax will lower its price. C) less a sales tax will raise its price. D) more a sales tax will raise its price. 5) Which of the following is the best example of a public good? A) a bridge B) a lighthouse C) a car D) a fruit orchard 6 A private good is ________ and ________. A) nonrival; nonexcludable B) rival; excludable C) nonrival; excludable D) rival; nonexcludable
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7) In the figure above, if a tax of $2 per widget is imposed, then the net price of widgets received by a seller will be A) between $8 and $6. B) $6. C) between $6 and $4. D) equal to or less than $4 8) For a good to be nonrival, which of the following must be true? A) A person is not willing to pay for the good because even without paying for it, the person can
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2008 for the course ECON 200 taught by Professor Newton during the Winter '08 term at Ohio State.

Page1 / 8

sample%20exam%202%20Wi08 - Economics 200 Professor Mumy...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online