xcquiz1-0201 - c) some resources are being wasted. d)...

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ECON 251-0201 Extra Credit Quiz 1 Given Thursday, September 14 1. If the price elasticity of demand is 0.8, demand is a) elastic b) inelastic c) unit elastic d) vertical 2. If the price elasticity of demand is 0.8, a small increase in price will a) increase the quantity demanded b) increase revenues c) decrease revenues d) reduce the price elasticity of demand 3. Allocative efficiency means that a) firm profits are maximized. b) opportunity costs are zero.
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Unformatted text preview: c) some resources are being wasted. d) resources are allocated to their most highly valued use. 4. If a market producing output below the equilibrium level, which of the following is true? a) MC = MB b) MC > MB c) MB > MC d) Consumer surplus is maximized. 5. The first ECON 251 midterm exam is on a) Thursday, September 28 b) Thursday, September 14 c) Friday, October 6 d) Tuesday, October 10...
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This note was uploaded on 04/27/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue.

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