Note: Few, if any, definition questions are given on this practice exam, but such questions will be found on
the mid-term exam (~ 6-10 of them). As I said in class, you should depend mainly on your handouts for
determining which definitions you are requir
Name: Class: Date: ID: A
Identify the choice that best completes the statement or answers the question.
1. Which of the following is true of rms in both monopolistic competition and perfect competition?
Price exceeds marginal cost.
1. Consider Country T Whose economy produces only three items, Tomato, Tofu and Tacos. The base
year is arbitrarily chosen as 2004
Good Quantity (2004) Price (2004) Quantity (2005) Price (2005)
Tomatos 1,000 $1.00 1,200 $1.50
Tofu 2,000 $3.00 1,800 $4
Instructions: This exam consists of a series of four short-answer problems. You are to answer
any three of the four problems. Each problem will be worth up to ten points.
Question #1: Explain one concept that you have le
ExternalitiesThe Broken Hand
Externalities: The Basics
Many instances where actions of one party affect well being
Smoking cigars in class
Factory emitting smoke
Individual contributing to American Red
Lecture Note 3# Command and Control
A society wants its members to internalize their external costs and benefits
Collective action remedies ark best when they place the burden of accommodation on the parties
who can accomplish them at the lowest cost.
Lecture note #2
Reservation Prices: highest price someone is willing to pay to obtain any good or service
Market: any good or service consists of all (actual or potential) buyers or sellers of that good or
Demand Curve: a good or service tells us
Unless noted otherwise, all questions are worth 2 points. Typed homework answers are appreciated but not
Below are the reservation prices for buyers and sellers in a market for tofu dogs. There are six buyers in this
market (B1, B2,
Homework 4 Questions 5 and 6 are worth 2.5 points each; the rest are worth 2 points each.
1. The government of Georgia is trying to decide how many miles of a scenic river it should
protect from degradation. For simplicity, assume there are only two optio
For Questions 1 and 2: Dooley and her 9 friends are eating dinner at Zocolos, a restaurant
in Midtown. To simplify the task of paying for their meal, they have agreed in advance
to split the cost of their meal equally, with each paying one-ten
Unless noted otherwise, all questions are worth 2 points. Because this homework requires no graphs to be
submitted, TYPED answers are REQUIRED.
Two firms, ENERGY and INCINERATOR, are the only sources of sulfur dioxide (SO2) in a city. They eac
Homework #5 (all questions worth 2 points unless noted otherwise)
1. Consider the following dating game, which has two players, A and B, and two actions, buy a movie
ticket or buy a baseball ticket. The payoffs, given in points, are as shown in the follow
Topic Analysis paper
23 November 2013
Minorities and people in poverty are living in communities with unhealthy conditions in
their society. Those who live by a power plants,
Turn your Cell Phones off
As before the first exam, the practice exam focuses on problem solving, but does not
ask definition questions, but you can expect definition questions and you can expect
questions on additional readings, podcasts and the po
There is only one correct answer for each question. Choose the best answer for each question.
If goods J and K are substitutes, an increase in the price of J causes
a. quantity demanded of J to fall and the demand curve for K to shift in
b. a decrease