PracticeMidterm6 - Economics 201(Section 025 Introduction...

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1 Economics 201 (Section 025) – Introduction to Microeconomics Practice Midterm Exam 6 Instructor: G. Lepori Instructions: fill in your name and student number both on this sheet and on the attached scantron sheet. For each question circle, fill in ONE bubble on the scantron sheet that you feel is the most appropriate solution to the question. There are 40 questions and each question is worth one point. You have 90 minutes to complete the exam. 1) A consumer's willingness to pay directly measures a. the extent to which advertising and other external forces have influenced the consumer’s decisions regarding his or her purchases of goods and services. b. the cost of a good to the buyer. c. how much a buyer values a good. d. consumer surplus. ANS: C 2) Consumer surplus in a market can be represented by the a. area below the demand curve and above the price. b. distance from the demand curve to the horizontal axis. c. distance from the demand curve to the vertical axis. d. area below the demand curve and above the horizontal axis. ANS: A 3) Other things equal, if the price of a good falls, the consumer surplus a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged. ANS: C 4) The Surgeon General announces that eating chocolate increases tooth decay. As a result, the equilibrium price of chocolate a. increases, and producer surplus increases. b. increases, and producer surplus decreases. c. decreases, and producer surplus increases.
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2 d. decreases, and producer surplus decreases. ANS: D 5) Average total cost tells us the a. total cost of the first unit of output, if total cost is divided evenly over all the units produced. b. cost of a typical unit of output, if total cost is divided evenly over all the units produced. c.
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PracticeMidterm6 - Economics 201(Section 025 Introduction...

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