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 a. A. b. A + B. c. A + C + G. d. A + B + C + D +E + F. 3. In the figure shown, the domestic price and quantity demanded after the tariff would be
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a. P 1 , Q 1 . b. P 1 , Q 4 . c. P 2 , Q 2 . d. P 2 , Q 3 . 4. In the figure shown, the free-trade price and quantity demanded would be a. P 1 , Q 1 . b. P 1 , Q 4 . c. P 2 , Q 2 . d. P 2 , Q 3 . 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 a. E. b. B. c. D + F. d. B + D + E + F. 7. In the figure shown, producer surplus after the tariff would be a. G. b. C + G. c. A + C + G.
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d. A + B + C + G. 8. In the figure shown, as a result of the tariff, government tariff revenue would be a. E. b. B. c. D + F. d. B + D + E + F. 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 a. P 1 . b. P 2 . c. P 3 . d. P 4 . 11. Total surplus derived from the most efficient outcome is represented by the area a. g. b. e + g. c. c + d. d. a + b + c. 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? a. The majority vote of the residents in surrounding neighborhoods should determine whether a permit is issued. b. As long as the value to consumers of concerts exceeds the cost of concerts (including the external costs) the permit should be issued. c. As long as concert organizers are willing to return the park to its original condition after the concert, the permit should be issued. d. The permit should not be issued as long as there are identifiable external costs imposed on residents in surrounding neighborhoods. 13. At the private market outcome, price P
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This note was uploaded on 09/14/2011 for the course ECON 103 taught by Professor Gispy during the Spring '11 term at Prairie State College .

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

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