Exam_1_Pink_Econ_415_Spring_2007

Exam_1_Pink_Econ_415_Spring_2007 - Econ 415 Spring 2007...

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Unformatted text preview: Econ 415 Spring 2007 Exam 1 Pink Name ( Please PRINT ): Last Name First Name Student ID #: Place a checkmark next to your section number then record the 4-digit section number on the scantron. 0101 Monday/Wednesday 9:00 10:15 p.m. 0201 Monday/Wednesday 10:30 a.m. 11:45 a.m. No graphing calculators are allowed. No brimmed hats are allowed. If you are wearing a hat with a brim, turn the brim to the back. All cell phones are to be turned off and put away. You will be in danger of receiving a zero on the exam if your cell phone is on or not put away Do not begin the exam until the instructor tells you to. While waiting, fill out your scantron completely and accurately and read the remaining instructions on this page. If any suspicious behavior is noted, you will be moved and may also receive a zero on the exam. Cheating will not be tolerated. Exam 1 contains 40 questions on 8 pages. Please be sure that you have 8 pages in your test booklet. If not, please inform the instructor before you begin the exam. Please mark all answers on BOTH the test booklet and the scantron. Once you are finished, please take both your test booklet AND answer sheet to the proper station. Econ 415 Page 1 of 8 Spring 2007 Exam 1 Pink Consider the competitive market for widgets depicted below: 1. Consumer Surplus in this market equals _______million dollars. a) 50 b) 75 c) 100 d) 125 e) 150 2. Producer Surplus in this market equals _______million dollars. a) 50 b) 75 c) 100 d) 125 e) 150 Suppose the firms in this market merge to form a monopoly. We assume that this monopoly is unable to price discriminate across consumers of this product. 3. The monopoly price of widgets would equal ____ dollars per widget. a) 14 b) 15 c) 16 d) 17 e) 18 4. The gain in producer surplus from formation of this monopoly would equal ______ million dollars. a) 8 b) 10 c) 12 d) 14 e) 16 5. The deadweight loss in efficiency caused by this monopoly equals _____ million dollars. a) 8 b) 10 c) 12 d) 14 e) 16 6. Pareto argued that we have an increase in efficiency if, through a change in public policy or in the law: a) some members of society are better off, and no member of society is worse off. b) the sum of utilities derived by members of society is increased. c) dollar benefits to winners exceed dollar costs to losers from the change. d) the poor are made better off, even though the rich may be worse off. Econ 415 Page 2 of 8 Spring 2007 Exam 1 Pink 20 15 10 10 15 20 5 5 Millions of Widgets Price ($/Widget) S D Three roommates win a pitcher of beer at a local pub. The pitcher is large, including 12 glasses of beer. The utility each woman derives from different levels of beer consumption are shown below....
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Exam_1_Pink_Econ_415_Spring_2007 - Econ 415 Spring 2007...

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