examiib - Principles of Microeconomics Exam II Version B...

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Principles of Microeconomics – Exam II – Version B Name: _________________________ University of Texas-Arlington Multiple Choice : Select the best answer (2 points each) 1. The income elasticity of demand is likely to be lowest for which of the following goods? c. milk 2. The demand for emergency medical care (within a range of prices the person can afford) is probably: _____ b. perfectly inelastic. 3. A good will tend to be more elastic if: _____ b. it has close substitutes. 4. Utiltiy refers to the a. satisfaction which a consumer derives from a good or service. 5. Assume that land suitable for growing corn is also suitable for growing soybeans. A decrease in the price of corn will therefore: _____ b. reduce the cost of growing soybeans. 6. A decrease in supply would result from: _____ b. an increase in the prices of input resources. 7. Where total utility is at a maximum, marginal utility is c. zero. 8. Consumers pay the full burden of an excise tax if c. demand is perfectly inelastic. 9. At the minimum wage (above equilibrium wage) a. all individuals who end up working are paid more than if they were paid the equilibrium wage.
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10. Assume that good X is produced using an imported input, Z. If the government increases the tariff on Z, you expect a change in the market for the good X (hint: this is a difficult question, you might want to draw the effects out before looking at the above graphs) c. from F to E. 11. In the market for mechanical pencils, the equilibrium point has moved down and to the right. What effect does this change have on market equilibrium? c. price decreases while quantity increase 12. The number of persons who want to work at the minimum wage is ________. c. N2 13. Price floors a. cause surpluses when they are effective. _____ b. are effective when they are above the equilibrium price. c. cause fewer exchanges to be made. 14. Which of the following is true? a. The price elasticity of demand for COKE-COLA is higher than the price elasticity of demand for soft drinks in general. 15.
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This note was uploaded on 12/12/2008 for the course ECON 29486 taught by Professor Denniswilson during the Fall '06 term at Western Kentucky University.

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examiib - Principles of Microeconomics Exam II Version B...

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