sample exam 3

sample exam 3 - ARE 201 Spring 2009 Sample Exam #3 Topics:...

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ARE 201 Spring 2009 Sample Exam #3 Topics: Chapters 7—9 MULTIPLE CHOICE (3 points each) 1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States. c. the effect of income redistribution on work effort. d. how the allocation of resources affects economic well-being. 2. Willingness to pay measures the a. amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. b. amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. maximum amount that a buyer will pay for a good. 3. A supply curve can be used to measure producer surplus because it reflects a. the actions of sellers. b. quantity supplied. c. sellers’ costs. d. the amount that will be purchased by consumers in the market. 4. The Surgeon General announces that eating chocolate increases tooth decay. As a result, the equilibrium market price of chocolate a. increases, and producer surplus increases. b. increases, and producer surplus decreases. c. decreases, and producer surplus decreases. d. decreases, and producer surplus increases. Market Supply and Demand for Pepperoni Pizza PRICE QUANTITY DEMANDED QUANTITY SUPPLIED $12.00 0 12 $10.00 4 10 $8.00 8 8 $6.00 12 6 $4.00 16 4 $2.00 20 2
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5. According to the table shown, the equilibrium or market-clearing price is a. $10.00. b. $8.00. c. $6.00. d. $4.00. 6. In a market, total surplus is a. equal to producer surplus plus consumer surplus. b.
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This note was uploaded on 10/22/2009 for the course ARE 201 taught by Professor Eryuruk during the Fall '08 term at N.C. State.

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sample exam 3 - ARE 201 Spring 2009 Sample Exam #3 Topics:...

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