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110s09mid2key - Brigham Young University Department of...

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1 Brigham Young University Department of Economics Economics 110 – Principles of Economics Professor Kerk Phillips – Spring Term 2009, section 1 Midterm #2 key 5/28 (Thu) – 5/29 (Fri) Testing Center This test is multiple choice, fill in your answers on the answer sheet and do not write on this exam. It is closed book and closed notes. There is no time limit and you may use calculators; either those provided by the testing center or your own as long as it is not a programmable calculator. Read all questions carefully before answering. 1. A decrease in the sales tax on gasoline would lead to a ___ in the total price paid by motorists, and a ___ in the net price received by gas stations. a) decrease, decrease b) increase, decrease c) decrease, increase d) increase, increase e) none of the above 2. A binding price floor causes… 3. A real world example of a binding price ceiling is… 4. If the elasticity of supply is less than the elasticity of demand, then the burden of the tax …
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