2009Final_12112009-2

2009Final_12112009-2 - Name: _ Date: _ Microeconomics 2010...

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Version 2 Page 1 Name: __________________________ Date: _____________ Microeconomics 2010 final, sec. 300. Fall 2009 (Version 2) The exam has 123 questions. Make sure you have all 123 questions (29 pages) 1. From the individual's perspective maximizing their utility and behaving efficiently are one and the same. A) True B) False 2. A curve that represents combinations of two goods that yield equal levels of satisfaction is a(n): A) indifference curve. B) budget curve. C) marginal utility curve. D) price-consumption curve. 3. The short-run supply curve for a perfectly competitive firm is its: A) marginal revenue curve to the right of its marginal cost curve. B) demand curve above its marginal revenue curve. C) average total cost curve below its marginal cost curve. D) marginal cost curve above its average variable cost curve. 4. Consumer surplus for an individual buyer is equal to: A) the price of the good, minus the marginal cost of producing the good. B) the consumer's willingness to pay for the good, minus the marginal cost of producing the good. C) the marginal cost of the good, minus the consumer's willingness to pay for the good. D) the consumer's willingness to pay for the good, minus the price of the good. 5. Consider the market for pigs and assume there is a marginal external cost associated with raising pigs. Without government regulation, at the market equilibrium price and quantity of pigs: A) the price will be less than the marginal social cost. B) too few pigs will be raised. C) the price will be less than the marginal cost to pig farmers. D) the price will be less than the marginal benefit.
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Version 2 Page 2 6. Consider two firms: Suppose that firm A pollutes, this negatively affects firm B, and the amount firm A pollutes is un-taxed and unregulated. Which of the following statements is definitely NOT true? A) The marginal cost of firm A is affected by how much firm B produces B) The equilibrium quantity of output for firm A is not the efficient quantity from society's perspective C) The marginal cost of firm B is unaffected by the pollution from firm A D) The supply curve for firm B does not reflect social marginal costs 7. In long-run equilibrium, economic profits in a perfectly competitive industry are: A) zero. B) positive. C) indeterminate. D) negative. 8. If a good that involves external costs is then priced to take these costs into account, then its price would: A) rise and output would likely fall. B) fall and output would go up. C) rise but output would stay the same. D) not change but output would fall. 9. If government officials set an emissions tax too high: A) the marginal social cost of pollution will exceed the marginal social benefit of pollution. B)
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This note was uploaded on 07/17/2011 for the course ECON 102 taught by Professor Jarv during the Summer '09 term at Rio Hondo College.

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2009Final_12112009-2 - Name: _ Date: _ Microeconomics 2010...

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