Sample Quiz 3 - Sample Quiz #3 Ec 201 Michigan State...

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Sample Quiz #3 Ec 201 Spring, 2009 Michigan State University L. Martin 1. The deadweight burden of a tax refers to a. the revenue lost by the private economy and gained by the government; b. the lost gains from trades not made at the lower level of economic activity;* c. the higher prices paid by consumers; d. the lower net revenue received by producers; e. c and d. 2. A subsidy paid to users (buyers) of recycled plastics a. shifts the demand for recycled plastics to the right;* b. shifts the supply of recycled plastics to the right; c. shifts the demand for recycled plastics to the left; d. shifts the supply of recycled plastics to the left; e. leads to an excess demand. 3. If the price rises by 10% and the quantity falls by 20% the price elasticity of demand equals a. one; b. two;* c. one-half; d. zero; e. infinity. 4. A price floor set below the market clearing price for sugar leads to a. an inelastic demand for sugar; b. a surplus of sugar; c. a shortage of sugar; d. no change in the sugar market;*
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This note was uploaded on 10/17/2011 for the course EC 201 taught by Professor Haider during the Spring '10 term at Michigan State University.

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Sample Quiz 3 - Sample Quiz #3 Ec 201 Michigan State...

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