EC2106F08M2 - Name: _ Class: _ Date: _ ID: A Midterm 2 for...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Midterm 2 for ECON 2106-C / Prof. B-C Kim Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.During the exam, you are not allowed to ask question(s) to a proctor. You may use calculator. Figure 9-8 ____ 1. Refer to Figure 9-8 . Producer surplus in this market after trade is a. C. b. A. c. B + C + D. d. A + B. ____ 2. Refer to Figure 9-8 . Consumer surplus in this market before trade is a. A + B + D. b. A + B. c. C. d. A. ____ 3. Refer to Figure 9-8 . The change in total surplus in this market because of trade is a. D, and this area represents a gain in total surplus because of trade. b. D, and this area represents a loss of total surplus because of trade. c. B + D, and this area represents a loss of total surplus because of trade. d. B + D, and this area represents a gain in total surplus because of trade.
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Name: ________________________ ID: A 2 The following table represents the costs of five possible sellers. Table 7-4 SELLER COST DALE $1,500 JILL $1,200 DENISE $1,000 CATHERINE $750 JACKSON $500 ____ 4. Refer to Table 7-4 . If the price is $775, who would be willing to supply the product? a. Dale, Jill and Denise b. Dale and Jill c. Catherine and Jackson d. Denise, Catherine and Jackson ____ 5. Refer to Table 7-4 . If the market price is $1,000, the producer surplus in the market is a. $3,700. b. $700. c. $750. d. $2,250. ____ 6. The minimum wage was instituted in order to ensure workers a. a minimally adequate standard of living. b. a middle-class standard of living. c. employment. d. unemployment compensation. ____ 7. In which of these cases will the tax burden fall most heavily on buyers of the good? a. The demand curve and the supply curve are both relatively flat. b. The demand curve is relatively steep and the supply curve is relatively flat. c. The demand curve is relatively flat and the supply curve is relatively steep. d. The demand curve and the supply curve are both relatively steep. ____ 8. Two firms, A and B, each currently dump 50 tons of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. The government gives each firm 20 pollution permits, which it can either use or sell to the other firm. It costs Firm A $100 for each ton of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each ton of pollution that it eliminates before it reaches the river. It is likely that a. Firm B will buy all of Firm A's pollution permits. Each one will cost between $50 and $100. b.
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This note was uploaded on 02/08/2011 for the course ECON 2106 taught by Professor Minjaesong during the Fall '06 term at Georgia Institute of Technology.

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EC2106F08M2 - Name: _ Class: _ Date: _ ID: A Midterm 2 for...

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