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

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!

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
2. If a per unit tax is imposed, the more inelastic demand is, the
3. Which of the following statements is false?
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.