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Microeconomics Test 3 (78)

# Microeconomics Test 3 (78) - AP Microeconomics Multiple...

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AP Microeconomics Multiple Choice: Choose the best answer to each question. Each question is worth an equal amount. Answer questions 1-8 using the figure below. 1. In the figure shown, consumer surplus with free trade would be a. A. b. A + B. c. A + C + G. d. A + B + C + D + E + F. 2. In the figure shown, consumer surplus after the tariff would be 3. In the figure shown, the domestic price and quantity demanded after the tariff would be

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4. In the figure shown, the free-trade price and quantity demanded would be 5. In the figure shown, producer surplus with free trade would be a. G. b. C + G. c. A + C + G. d. A + B + C + G. 6. In the figure shown, as a result of the tariff, deadweight loss would be 7. In the figure shown, producer surplus after the tariff would be
8. In the figure shown, as a result of the tariff, government tariff revenue would be Answer questions 9-16 using the figure below. The figure below reflects the market for outdoor concerts in a public park surrounded by residential neighborhoods. 9. For each unit of “concert” produced, the social cost would include (i) the private costs of the concert organizers. (ii) the enjoyment that concert attendees receive from the concert. (iii) the cost that people in the residential neighborhoods will incur as a result of the increased traffic and noise spillover on concert days. a. (i) only. b. (i) and (ii) only. c. (i) and (iii) only. d. (i), (ii) and (iii).

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10. At the private market outcome, the equilibrium price will be 11. Total surplus derived from the most efficient outcome is represented by the area 12. Assume that the concert organizers must purchase a concert permit (the cost for the permit is included in private cost) before organizing the concert. What criteria should the city use in determining whether or not to issue a permit?
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Microeconomics Test 3 (78) - AP Microeconomics Multiple...

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