Multiple Choice
[dentzi the Choice that best completes the statement or answers the question.
1. A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job,
Multiple Choice
Identifi; the choice that best completes the statement or answers the question.
1. If the government wants a natural monopoly to earn a "fair return" or zero economic prot, it will set
1. Demand is given by q = 7 2 p . What is the price elasticity of demand at p : 3?
6
5
3
2
None of the above
P150931?
2. Consider a downward-sloping linear demand curve. Then
the elastic portion of th
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Form A Form B
Answer Keys for Midterm#2
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22222 MultiEle choice: choose ONE
When a natural monopoly exists, it is
A. always cost effective to have perfect competition among
firms to produce the product.
B. never cost effective for one firm to produce the product.
C. always co
1.
Suppose that there are four countries (South Korea, India, Indonesia, and China). The autarky
prices (measured in each countrys currency) for each of two goods are given in the following
table. Whi
INSTRUCTIONS:
0 Please read each question below carefully, and respond to the questions on a separate sheet
of scratch paper. You must show your work.
0 Please write clearly and indicate your answers
Section A: Fill-in-the-blanks
each uestion is worth 0.5 oints
1.
10.
One of the economic statistics used to measure ination is GDP deator/CPI
Assume that a rancher sells McDonald's a quarter-pound o
1. How a metropolitan area is defined? How many metros in the U.S.?
A metropolitan area is defined as an aggregate of a principle city and its
economicallytied adjacent counties. The building blocks a