Econ exam 2 - User Course Test Started Submitted Status...

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User Alvina Kollie Course ECON 1100 Principles of Microeconomics - Section 030 (Fall 2015 1) Test Exam 2 Started 11/3/15 3:19 PM Submitted 11/3/15 4:09 PM Status Completed Attempt Score 140 out of 200 points Time Elapsed 49 minutes out of 1 hour Results Displayed All Answers, Submitted Answers, Correct Answers, Feedback, Incorrectly Answered Questions Question 1 0 out of 5 points When there is a negative externality, the unregulated market results in a level of output that is ______ than the socially efficient level and a price that is ________ than the socially efficient level. Selected Answer: higher; higher Answers: higher; higher higher; lower lower; higher lower; lower Question 2 5 out of 5 points Use the graph below to answer the question. If this market is free to adjust to equilibrium, then _____ units will be bought and sold for a price of _____ each. Selected Answer: 800; $10 Answers: 800; $5 800; $10 400;
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$10 400; $15 Question 3 5 out of 5 points Which of the following is not one of the assumptions of the model of perfect competition? Selected Answer: Firms in the market produce similar, but not identical, products. Answers: The output of one firm is a perfect substitute for the output of every other firm. Firms in the market produce similar, but not identical, products. There are many buyers and sellers. There are no barriers to entry. Question 4 5 out of 5 points Which of the following best represents a variable input? Selected Answer: extra workers hired by a department store during the holiday season Answers: extra workers hired by a department store during the holiday season the amount of kitchen space available in an existing restaurant a copy machine used in an insurance office the advertising logo designed for a business consulting firm Question 5 0 out of 5 points Which of the following is true if a perfectly competitive industry is currently in long- run equilibrium? Selected Answer: P = MR = MC > ATC = minimum LRAC Answers: P = MR = MC > ATC = minimum LRAC P > MR = MC = ATC = minimum
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LRAC P = MR = MC = ATC = minimum LRAC P > MR > MC > ATC > minimum LRAC Question 6 5 out of 5 points Based on the graph below, if government imposes a $6 per unit tax in this market, total tax revenues collected will be equal to _______. Selected Answer: $12 0 Answers: $60 $12 0 $24 0 $36 0 Question 7 5 out of 5 points If the statutory incidence of a commodity (excise) tax is on sellers, the economic burden of the tax is on: Selected Answer: buyers if demand is perfectly inelastic. Answers: sellers, regardless of the elasticity of demand. buyers, regardless of the elasticity of demand. sellers if demand is perfectly inelastic. buyers if demand is perfectly inelastic. Question 8 0 out of 5 points
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Suppose that total utility increases from 0 to 20 with the consumption of the first apple, and from 20 to 30 with the consumption of the second apple. According to the law of diminishing marginal utility, consumption of a third apple will cause total utility to: Selected Answer: fall from 30 to 20.
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