practice final 1

practice final 1 - Economics 2 Winter 2006 Prof. Mar ia C...

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Economics 2 Winter 2006 Prof. Maria Cândido 1 Economics 2 Final Examination Winter Quarter March 20 th , 2006 Instructions: a. You have 3 hours to finish your exam. Put your name and student ID number on the cover of the bluebook. b. The Buckley Waiver is pre-printed on the back of your bluebook. If you sign it, you will confirm that your exam may be returned in the filing cabinets, which are open to all students, in 245 Sequoyah Hall. c. There are two parts to this final – multiple-choice questions (Part I) and longer questions (Part II). Answer them all in the blue book , and please write neatly. d. You do not need to justify your answers for the multiple-choice questions. e. Show your work for the longer questions. f. Use a pen to write your answers. You are giving up your right to a regrade if you choose to use a pencil. g. The table below indicates how points will be allocated on the exam. Use your time carefully and efficiently. Question Points Part I 36 Part II 1. 7 2. 10 3. 6 4. 12 5. 6 6. 12 7. 11 Exam Total 100 h. With you, you should only have a pen, a bluebook and a calculator. i. You will not be allowed to leave the room during the final. j. Turn off your cell phone and good luck!
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Economics 2 Winter 2006 Prof. Maria Cândido 2 PART I: Multiple-Choice Questions (2 points each, 36 points total) 1. Suppose the government sets the price for water and the market for water is always experiencing shortages. One can infer that the a. government is trying to protect the incomes of the water supplier. b. quantity of water supplied exceeds the quantity of water demanded. c. government has established a price floor for water. d. price set by the government is too high. e. government has established a price ceiling for water. 2. If a per unit tax is imposed, the more inelastic demand is, the a. smaller the deadweight loss. b. larger the deadweight loss to producers. c. smaller the deadweight loss to consumers. d. larger the deadweight loss. e. less likely the deadweight loss will be affected. 3. Which of the following statements is false? a. To sell more, a price setter must lower price. b. A price taker must charge the market price. c. If a price setter raises price, they will sell less. d. A price taker’s revenues will rise if they sell more. e. Price setters can sell any quantity at any price. 4. Suppose a monopolist is charging $12 for output. One can infer that a. marginal revenues are greater than $12. b. average revenues are less than $12. c. marginal revenues are $12. d. marginal revenues are less than $12. e. insufficient information to infer. 5. If the equilibrium quantity is less than the socially optimal quantity, one can infer that a. the supply curve for the activity is below the marginal social cost curve. b.
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This note was uploaded on 12/26/2009 for the course ECON ECON 2 taught by Professor Hamilton during the Spring '09 term at UCSD.

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practice final 1 - Economics 2 Winter 2006 Prof. Mar ia C...

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