102-SP-08-Exam-2-Form-A-key - ECON 102 Exam-2 ECON 102...

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ECON 102 FORM A Exam-2 1 ECON 102 Name:_________________ Professor Jose J. Vazquez Section:_______ TA ______ Multiple Choice : in each question there is only one correct answer. Select the answer you believe to be MOST correct (2 pts each). 1. A tax on the following good will generate the greatest amount of deadweight loss: a. food b. luxury cars c. medicine d. housing e. children 2. A tax impose on consumers of gasoline (to be paid at the pump when a consumer purchase gasoline) will hurt: a. buyers of gasoline more than sellers of gasoline. b. sellers of gasoline more than buyers of gasoline. c. buyers and sellers of gasoline the same. d. neither sellers nor buyers of gasoline. e. It’s impossible to say with the information given. 3. As discussed in class, economists believe markets are an efficient way to distribute resources because: a. the maximize fairness for society. b. governments are inherently wasteful. c. they maximize social welfare d. governments usually do not account for the will of ALL people e. None of the above 4. Suppose the government decides to impose a tax on pizza. If the demand for pizza is more Inelastic than the supply for pizza then: a. sellers of pizza will share most of the burden of the tax b. both sellers and buyers of pizza will share the same burden for the tax. c. It is impossible to say with the information given. d. buyers of pizza will share most of the burden of the tax e. None of the above. 5. A price floor that is set above the equilibrium level in the market for labor will: a. increase the supply for labor b. decrease the demand for labor c. increase unemployment. d. all of the above. e. None of the above.
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ECON 102 FORM A Exam-2 2 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO QUESTIONS. Assume the diagram below represents the market for gasoline in the US. Assume the government decided to charge sellers with a 0.50 tax on every gallon of gasoline they sell at the pump. The following questions asked you to analyze the effect of this tax. 6. The equilibrium price of gasoline will: a. increase by $0.50 b. increase by less than $0.50 c. decrease by more than $0.50 d. decrease by less than $0.50 e. None of the above. 7. The burden of the tax will be shared: a. More by Buyers of gasoline b. Equally By buyers and sellers c. Only by buyers of gasoline d. More by Sellers of gasoline e. None of the above 8. Say your maximum willingness to pay for an iPod is $300. If you buy one at $200, after the transaction you will be better off by a. $0 b. $100 c. $500 d. It’s impossible to say without knowing the producer surplus. e. None of the above. 9. Assume that Pizza and Beer are complements. If the supply for Pizza goes up, total welfare in the market for Beer: a. will increase. b.
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This note was uploaded on 05/05/2008 for the course ECON 102 taught by Professor Fredgottheil during the Spring '04 term at University of Illinois at Urbana–Champaign.

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102-SP-08-Exam-2-Form-A-key - ECON 102 Exam-2 ECON 102...

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