Practice_finalA

Practice_finalA - page 1 of 12 Economics 2 Winter 2011 your...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
page 1 of 12 Economics 2 your name _______________________________ Winter 2011 your student i.d. __________________________ PRACTICE FINAL EXAM A DIRECTIONS: No calculators, books, or notes of any kind are allowed. All papers and notebooks must remain closed and on the floor at all times throughout the exam, and students are not allowed to leave the examination room until finished. Please do not turn in your exam before 12:30 p.m. Answer all questions in the space provided with the exam. Two hundred points are possible on this exam. HINTS: Feel free to use the following formulas if you find them useful. Area of a triangle = (1/2) (base) (height) Area of a trapezoid = (1/2)(base1 + base2)(height) MULTIPLE CHOICE—circle the correct answer (4 points each, 180 points total) 1.) The U.S. social security tax specifies that the worker and the firm each must make a contribution to social security. If the labor supply curve slopes up and the labor demand curve slopes down, then standard economic theory predicts that decreasing the amount the employer is required to contribute would result in a.) an increase in the after-tax wage received by the worker b.) a decrease in the after-tax wage received by the worker c.) no change in the after-tax wage received by the worker d.) an unclear effect on the after-tax wage received by the worker 2.) How would you compare the level of output produced by a standard monopolist (who must charge the same price to each customer) with that for a perfectly price-discriminating monopolist? a.) output is higher for the price-discriminating monopolist b.) output is higher for the standard monopolist c.) output is the same in either case d.) the answer depends on whether the marginal cost curve is horizontal or upward-sloping 3.) In a natural monopoly, a.) average costs rise as the level of output goes up b.) average costs rise as the level of output goes down c.) average costs do not depend on the level of output d.) average cost is always below the marginal cost 4.) Which of the following is true under monopolistic competition? a.) different firms produce the identical product b.) there are no barriers to entry c.) the demand curve facing an individual firm is horizontal d.) consumer surplus is zero
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
page 2 of 12 Questions 5 and 6 refer to an advertising game between Alice’s company and Bonnie’s company. Alice advertises Alice doesn’t advertise Bonnie advertises Alice gets 10 Alice gets 20 Bonnie gets 30 Bonnie gets 10 Alice gets 20 Alice gets 30 Bonnie doesn’t advertise Bonnie gets 20 Bonnie gets 20 5.) Which of the following statements is correct? a.) Alice has a dominant strategy and Bonnie has a dominant strategy b.) Alice has a dominant strategy and Bonnie does not have a dominant strategy c.) Alice does not have a dominant strategy and Bonnie has a dominant strategy d.) Alice does not have a dominant strategy and Bonnie does not have a dominant strategy 6.) How would you characterize the Nash equilibrium for this game?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/16/2011 for the course ECON 2 taught by Professor Kim during the Spring '08 term at UCSD.

Page1 / 12

Practice_finalA - page 1 of 12 Economics 2 Winter 2011 your...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online