Test3_practicequestions(1)

Rent ceiling of 350 is imposed b a transfer from

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Unformatted text preview: igure shows supply and demand curves for apartment units in a large city. The area ʺeʺ represents A) the loss in producer surplus if a rent ceiling of $350 is imposed. B) the total variable cost of supplying Q1 units. C) the marginal cost of supplying Q1 units. D) the total revenue received by supplying Q1 units. 24) The above figure shows supply and demand curves for apartment units in a large city. The area ʺcʺ represents A) the loss in consumer surplus if a rent ceiling of $350 is imposed. B) a transfer from producers to consumers if a rent ceiling of $350 is imposed. C) a transfer from consumers to producers if a rent ceiling of $350 is imposed. D) the total revenue received by supplying Q1 units. 25). The larger the U.S. imposed per unit import tariff on a good imported and produced in the U.S. A) the smaller the U..S consumer surplus. B) the larger the U.S. producer surplus. C) the larger the government revenue. D) All of the above. 26). If firms are producing efficiently, but consumers can reallocate goods amongst themselves? A) The equilibrium is not efficient. B) The equilibrium is efficient. C) The consumers are behaving irrationally. D) The firms are too greedy. 27). Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade 4 cookies for an additional ounce of milk. If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies. B) Rita will give some milk to Joe in exchange for cookies. C) No trade will take place since they both prefer to have more milk and fewer cookies. D) There is not enough information to make any predictions. 28). Moving away from the contract curve will A) harm both parties. B) harm only one of the parties. C) harm at least one of the parties. D) harm neither of the parties. For questions 29 - , refer to the following diagram ! ! !"!! $%!&'()%!*+,-.%!/%0+123!2$%!4/,%5(.2$!'(6!*(.!25(!+7/+)+/-&839!:8!&7/!;.-1%<!#$%!1(72.&12! # 29.1-.)%!1&7!'%!*(-7/!'=!1(77%12+7,!t0(+723!dgeworth box for two individuals, Al and Bruce. The contract The above figure depicts he E curve c&!&7/!e !found by connecting points :"!!an b '< A) a;"!!&!&7/.!1<! and b B) a>"!!'!&7/!/<! and c. ?" C) b a!!1!&7/./<! nd d! :735%.@!!! ! ? D)!"#$%&!!! '()$*+!,-./--*!!/"!0-"#1-! c and d. ! 23-4.$"*!5.(.34&!!! -7$4-)! 6 30) The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Points a and b A"!! $%!&'()%!*+,-.%!/%0+123!2$%!4/,%5(.2$!'(6!*(.!25(!+7/+)+/-&839!:8!&7/!;.-1%<!B(+723!&!&7/! # '! :"!! .%!C(32!8+D%8=!2(!.%*8%12!2$%!*+7&8!%7/(5C%723!&*2%.!2.&/+7,<! & ;"!! .%!8%&32!8+D%8=!2(!.%*8%12!2$%!*+7&8!%7/(5C%723!&*2%.!2.&/+7,<! & >"!! .%!%E-&88=!8+D%8=!2(!.%*8%12!2$%!*+7&8!%7/(5C%7...
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This note was uploaded on 09/29/2013 for the course ECON 201 taught by Professor Maxli during the Winter '13 term at Massey Palmerston North.

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