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sample final exam answer

sample final exam answer - than the equilibrium quantity...

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1 ARE 201 Spring 2009 Sample Final Exam Answer Sheet MULTIPLE CHOICE (2 points each) 1. c 2. d 3. c 4. c 5. c 6. c 7. a 8. c 9. b 10. b 11. b 12. b 13. c 14. a 15. a 16. c 17. a 18. b 19. b 20. d 21. b 22. c 23. b 24. b 25. c 26. c 27. b TRUE/FALSE (2 points each) 1. F 2. F 3. F 4. F 5. T 6. T 7. F 8. F 9. T SHORT ANSWER
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2 APPLICATION/SCENARIO (6 points for No.1 and 11 points each for No.2 and No.3) 1. ANSWER: Rival? Yes No Yes Excludable? No 2. ANSWER: a. 40 b. $10.00 c. $80.00. d. 40 e. $5 f. $200 g. It would fall from $80 to only $20. h. It would fall from $120 to only $30. i. At quantities less than the equilibrium quantity, the value to buyers exceeds the cost to sellers. Increasing the quantity in this region raises total surplus until equilibrium quantity is reached. At quantities greater
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Unformatted text preview: than the equilibrium quantity, the cost to sellers exceeds the value to buyers and total surplus falls. 3. ANSWER: Before imposing a minimum wage, the quantity of labor demanded would be Qo. After a minimum wage is imposed about Wm, the quantity of labor demanded would be at Qm, Private Goods Ice-cream cones Clothing Congested toll roads Natural Monopolies Fire protection Cable TV Uncongested toll roads Common Resources Fish in the ocean The environment Congested nontoll roads Public Goods National defense Knowledge Uncongested nontoll roads 3 which is less than Qo. Fewer workers would be demanded and those workers from Qm to Qo would be unemployed....
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