Micro Fall Exam II 05

Micro Fall Exam II 05 - Exam 2 several versions...

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Exam 2 several versions Student Name: __________________________________ Microeconomics Exam Dates: 9th week Instructions: I) On your Scantron card you must print three things: 1) Print your full name clearly; 2) Print the day and time of your section (for example MW 1:25); 3) Notice the number I have written in ink in the upper right corner of your test? Write that number on the Scantron card. (This number tells me which version of the test you have. Without it your test cannot be graded properly and you get no credit for your answers.) II) Answer on your Scantron card, using a #2 pencil. III) Warning: SOME QUESTIONS MUST BE ANSWERED SEVERAL TIMES! Such questions will begin with a phrase such as this: Repeat this answer on lines 37, 38 and 39. Remember to do it! IV) You must turn in this written exam along with your Scantron card to get credit for your Exam score. =============================================================== ====== Questions: 1. If the supply curve is vertical the burden of a tax on suppliers is borne: A. entirely by the suppliers. B. entirely by the consumers. C. mostly by the suppliers, and partly by the consumers, if the demand curve is inelastic. D. partly by the suppliers, and mostly by the consumers, if the demand curve is elastic. 2. (Repeat answer on line 25.) An important difference between price ceilings and taxes is that price ceilings __________ and taxes __________. A. create potential shortages; do not B. create potential shortages; result in no dead weight loss C. result in dead weight loss; do not D. result in dead weight loss; create potential shortages
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Reference: Figure 7-20 3. (Repeat answer on line 26.) Refer to the graph above. There will be a shortage of soldiers if the wage is set equal to: A. $6. B. $10. C. $12. D. $20. 4. (Repeat answer on Scantron lines 27 and 28.) If the demand curve is not at all responsive to price the burden of a tax on suppliers is borne: A. entirely by the suppliers. B. entirely by the consumers. C. mostly by the suppliers, and partly by the consumers, if the demand curve is inelastic. D. partly by the suppliers, and mostly by the consumers, if the demand curve is elastic. 5. (Repeat answer on Scantron line 29.) "Andron's Law" 1) states that any tax which raises significant revenue is bound to be inefficient. 2) states that no seller will face an inelastic demand curve. 3) states that the income elasticity of demand declines as you move down a straight line demand curve. A. Only statement 1 is correct. B. Only statement 2 is correct. C. Only statement 3 is correct. D. All three statements are correct. E. None of the statements are correct.
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Reference: Figure 7-10 6. (Repeat answer on Scantron line 30.) Refer to the graph above. Initial market equilibrium is at point H. When government imposes a per unit tax, supply shifts from S0 to S1. The effect of this tax is to: A. raise the total cost per unit paid by buyers from D to C. B.
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This note was uploaded on 03/19/2008 for the course ECON 2302 taught by Professor Andron during the Spring '06 term at Austin CC.

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Micro Fall Exam II 05 - Exam 2 several versions...

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