Hammond, November 2008

Hammond, November 2008 - v222 THE UNIVERSITY OF WESTERN...

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v222 B. Hammond THE UNIVERSITY OF WESTERN ONTARIO LONDON CAI\ADA 1 ECONOMICS 1020-003 November 8.2008 MID-TERM TEST #2 INSTRUCTIONS 1. The test starts at I pm and ends at 3 pm. 2. The multiple choice questions are to be answered on the Scantron answer form. 3. The test contains 23 pages and 50 questions. 4. There are no washroom breaks allowed during the test. 5. Only non-programmable calculators are allowed. 6. Only the following items are allowed at your desk: a. Pencils b. Erasers c. Rulers d. Calculator (without the case) e. Student card (without the plastic wallet) Drinks, food, pencil cases, calculator cases, the plastic wallet holding your student card and cell phones are not allowed. The possession of a qell phone at your desk may be considered an attempt to cheat and will be dealt with accordingly. Further instructions are on the reverse of this page. 4fr rr ,,. '! lttlrY ! z,f ui6 v) .i J i.ri fiq; '-.^i1.{ ),. .\j \*l_j*
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v222 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. (Jse thefigure below to answer thefollowing question. Bl0 Ssls*r Figure 1 l) Consider the demand curve in Figure 1. If the price of the good is $4, what is the consumer surplus? A) 520.00 tBf$12.s0 c) $2s.00 D) S32.s0 $$rone of the above /- E g gro sq E LQ -,$ "u s "**
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v222 2) The marginal cost for Morgan's Marvellous Movies is given in the following table: Quantity Marginal Cost ($) If the firm sells the fifth unit at a price of $7, what is its producer surplus on that unit? l4 2 4.50 35 4 5.50 56 A) S28 $r c) $3 D) $7
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v222 Use thefigure below to answer thefollowing question. fr g s iEr Itr rfo Figure 2 ftrnlt1 3) Refer to Figure 2. If the level of output is 200, the deadweight loss is area A) ach. t/ @H""' C) hcg. D) acg. E) bcf.
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v222 Use the information below to answer thefollowing question. t a a f I $ O16nO*r Figure 3 4) Consider the demand and supply curves in Figure 3. Which area in the diagram indicates the loss in consumer surplus from underproduction? @roa B) acd C) eacf D) bcd E) knci 5) Which one of the following is notlikely to be an outcome of rent ceilings? I A 'x ^n' u 3*) a short-run shortiage of housing )btu"t market prices below the rent ceiling prices Qflongwaiting lists of potential renters for rent-controlled housing ,/' ,Df increased search activity for rent-confiolled housing ,E) a black market
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v222 6) Suppose a minimum wage law is in force, with a wage of $4 per liour resulting in an excess quantity of labour supplied of 10 million hours. Then the demand for labour inffeases such that supply and demand intersect at $5 per hour. What will happen to wages and employment?
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This note was uploaded on 11/18/2010 for the course ECONOMICS 1021 taught by Professor Parkin during the Fall '10 term at UWO.

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Hammond, November 2008 - v222 THE UNIVERSITY OF WESTERN...

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