OCT20.2007.C02test - ECMC02 Term Test October 20, 2007...

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Unformatted text preview: ECMC02 Term Test October 20, 2007 Time: 2 hours Professor Gordon Cleveland ________________________________ ____________________ Your name (Print clearly and underline your last name) Your student number This exam consists of multiple choice questions and short answer questions. There are 24 multiple choice questions, each worth 3 marks, which are to be answered on the front sheet of this exam in the space provided. There are two short answer questions that are worth a total of 28 marks. Your exam consists of 13 pages (counting this first page). Please count your exam's pages immediately and report any problems. FILL IN YOUR NAME NOW. 1. _______ 6. _______ 11. ________ 16. _______ 21. ________ 2. _______ 7. _______ 12. ________ 17. _______ 22. ________ 3. _______ 8. _______ 13. ________ 18. ________ 23. _______ 4. _______ 9. _______ 14. ________ 19. ________ 24. _______ 5. _______ 10. _______15. ________ 20. ________ 2 PART I - 24 Multiple Choice Questions - 72 marks 1-5. Denver has a taxicab industry that charges a certain price per ride (no matter how long the ride is). The current demand for taxi rides is given by P = 50 - .015Q with P representing the price of a taxi ride in dollars and Q representing the daily quantity of taxicab rides. The supply of taxi rides depends on how many cabs are on the road, and how hard each driver works. Supply is given by P =.005Q. The questions below refer to this taxi industry in Denver. This information can be used in answering questions 1-5. 1. If there is no government intervention in this perfectly competitive taxi business, what will be the daily amount of consumer surplus generated for consumers? A) $2500B) $5625 C) $7500 D) $10,000 E) $12,500 F) $15,625 G) +$17,725 H) +$22,500 I) +$31,250 J) +$32,500 K) +$40,000 L) +$42,875 M) +$46,875 N) +$55,125 O) +$60,000 P) +$65,675 Q) +$67,500 R) +$82,675 S) +$93,750 T) +$100,000 U) +$112,500 V) +$120,000 W) +$122,500 X) +$142,500 Y) +$150,000 Z) none of the above 2. If there is no government intervention, what is the daily amount of producer surplus? A) $2500B) $5625 C) $7500 D) $10,000 E) $12,500 F) $15,625 G) +$17,725 H) +$22,500 I) +$31,250 J) +$32,500 K) +$40,000 L) +$42,875 M) +$46,875 N) +$55,125 O) +$60,000 P) +$65,675 Q) +$67,500 R) +$82,675 S) +$93,750 T) +$100,000 U) +$112,500 V) +$120,000 W) +$122,500 X) +$142,500 Y) +$150,000 Z) none of the above...
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This note was uploaded on 04/21/2011 for the course ECMC 02 taught by Professor Cleveland during the Fall '08 term at University of Toronto- Toronto.

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OCT20.2007.C02test - ECMC02 Term Test October 20, 2007...

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