ST_2_Fall_05 - Please note that the actual final exam will...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Please note that the actual final exam will have 30 multiple choice questions (30 points) and 11 short answer questions (45 points) for a total of 75 points!! ECON 202 (Intro Micro) SAMPLE FINAL EXAM 2: This sample test has 35 multiple choice questions and 14 short answer questions. Please remember that this test is longer than the actual final will be. SAMPLE FINAL 2 Multiple Choice Section Answer All Questions Figure 12 1. Figure 12 indicates the industry cost and demand conditions for a product produced in an oligopolistic industry. The price of this product is most likely to be a. greater than P 2 . b. P 2 . c. P 1 . d. in the range between P 1 and P 2 . 2. (I) Oligopolistic firms have an incentive to collude to increase profits. (II) Oligopolistic firms have an incentive to cheat on collusive agreements to increase profits. a. I is true; II is false. b. I is false; II is true. c. Both I and II are false. d. Both I and II are true. 3. Patent laws that allow the inventor to maintain monopoly rights to an invention increase the price of the product and a. increase the profitability of inventive activities, thereby speeding up technological developments. b. increase the profitability of inventive activities, thereby slowing down technological developments. c. decrease the profitability of inventive activities, thereby speeding up technological developments. d. decrease the profitability of inventive activities, thereby slowing down technological developments. 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
4. Which of the following is the best example of a tariff? a. a tax placed on all small cars sold in the domestic market b. a limit imposed on the number of small cars that can be imported from a foreign country c. a subsidy from the United States government to domestic manufacturers of small cars so they can compete more effectively with foreign producers of small cars d. a $100-per-car fee imposed on all small imported cars Figure 18 5. Figure 18 shows cost and revenue curves for a monopolistic firm. If a regulatory agency forced this firm to operate at a price equal to the firm’s minimum average total cost, a. the firm would still earn some profit. b. the firm would be minimizing its losses. c. there would be excess demand for the product produced by the monopolist. d. output would be smaller than in the absence of regulation. 2
Background image of page 2
6. On the Laffer curve shown, tax revenue could be increased by a. decreasing the marginal tax rates if we were currently at point A. b. decreasing the marginal tax rates if we were currently at point C. c. increasing the marginal tax rates if we were currently at point B. d. increasing the marginal tax rates if we were currently at point C. 7. Turkey is an importer of goose down pillows. The world price of these pillows is $50. Turkey imposes a $7 tariff on pillows. Turkey is a price-taker in the pillow market. As a result of the tariff Turkish consumers of pillows will a. gain and Turkish producers of pillows will lose. b.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/14/2012 for the course ECON 201 taught by Professor Witte during the Spring '08 term at Northwestern.

Page1 / 11

ST_2_Fall_05 - Please note that the actual final exam will...

This preview shows document pages 1 - 4. Sign up to view the full document.

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