EC Quiz 3

EC Quiz 3 - Compared to ideal economic efficiency, when the...

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Econ 2023-2 10/25/2011 EC Quiz 3 NAME:_________________________________ Please fill in the blank with the letter you believe to be the best answer to the question ___ 1. With a price ceiling above the equilibrium price, a. quantity demanded would exceed quantity supplied. b. quantity supplied would exceed quantity demanded. c. the equilibrium price would be expected to fall over time. d. the market would be in equilibrium. ___ 2. If Chuck Norris’ tax liability increases from $10,000 to $14,000 when his income increases from $40,000 to $60,000, his marginal tax rate is a. 16.6 percent. b. 20 percent. c. 25 percent. d. 40 percent. ___ 3. A good is considered nonrival-in-consumption if a. even nonpaying customers can receive the full benefit from the good. b. the consumption of the good by one individual lowers the amount available for others. c. many individuals can share in the consumption of the same unit of the good. d. its production is financed through tax revenue rather than market prices. ___ 4.
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Unformatted text preview: Compared to ideal economic efficiency, when the production of a good generates external benefits (a positive externality), actual markets will likely result in an output that is too a. large and a price that is too high. b. large and a price that is too low. c. small and a price that is too low. d. small and a price that is too high. ___ 5. Jeff likes Pepsi and Coke. When the price of Pepsi rises, the substitution effect causes Coke to be relatively a. more expensive, so Jeff buys more Coke. b. more expensive, so Jeff buys less Coke. c. less expensive, so Jeff buys less Coke. d. less expensive, so Jeff buys more Coke. Econ 2023-2 10/25/2011 EC Quiz 3 Answer Key EC Quiz 3 1. D 2. B 3. C 4. C 5. D Econ 2023-2 10/25/2011 EC Quiz 3 Econ 2023-2 Extra Credit Quiz 3 Statistics Total taken 274 Mean 2.897810 2 Median 3 Mode 3 max 5 min 1 Score distribution 5 13 4 54 3 122 2 62 1 23 # of misses per question 1 129 2 90 3 91 4 224 5 12...
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EC Quiz 3 - Compared to ideal economic efficiency, when the...

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