Practice Exam 3
Indicate the answer choice that best answers the question.
1. Typically, as a firm hires additional workers, the marginal product of labor
a. decreases, and the value of the marginal product of labor decreases.
b. stays constant, and the v
Chapter 6 (pp. 161-181)
26, 28 September
Price Elasticity of Demand
Other Demand Elasticities
Price Elasticity of Supply
The Price Elasticity of Demand
The price elasticity of demand (D ) is the ratio of the
percent change in the quantity dem
Chapter 5 (pp. 131-153)
19 & 21 September
Because buyers and sellers are not always happy with the
equilibrium price and quantity provided by the market, there is
3 & 10 October
Benefits and costs of taxes
Efficiency and Equity
The tax system
An excise tax is a tax on sales of a good or service.
A tax is levied on either producers or consumers.
The incidence of taxation identifies
Chapter 9 (pp. 249-264)
Opportunity Cost and Decision Making
An explicit cost is one that requires an outlay of money
An implicit cost does not require an outlay of money, but is
Supply and Demand
Chapter 3 (pp. 66-92)
7, 12 September
Supply, Demand, and Equilibrium
Changes in Supply and Demand
A competitive market is a market in which there are many
buyers and sellers of the same good or service.
Trade-offs and Trade; CH. 2 Appendix
Chapter 2, pp. 26-36; 51-64
CH. 2 Appendix
Simplified way of looking at the world
CH. 2 Appendix
Consumer and Producer Surplus
Chapter 4 (pp. 103-125)
Gains from Trade
Willingness to pay and the Demand Curve
A consumers willingness to pay for a good is the maximum
price at which he or she
What, exactly, is Microeconomics?
CH. 1, pp. 6-19; CH. 2, pp. 26 & 40-43
Individual Choice Individual Interactions Economy-wide Interaction Chapter 2 Terminology
Microeconomics is about individual choice; that is, decisions
Indicate the answer choice that best completes the statement or answers the question.
1. Which of the following is not held constant in a demand schedule?
2. Refer to Figure 2-8. Which point on the g
Practice Exam 2 (Answers are on bold font)
1. If a tax shifts the demand curve downward (or to the left), we can infer that the tax was levied on
a. buyers of the good.
b. sellers of the good.
c. both buyers and sellers of the good.
d. We cannot infer any
Due dates: Sections 1 and 2 on Nov. 9, Section 3 on Nov. 10
1. The table sets out the demand and supply schedules for chocolate brownies.
(millions per day)