1) In Utopia, resources can be used to produce guns or butter. If only guns are produced a total of 120 units of guns can be made. If only butter is produced, 60 units of butter can be produced. Assume that the opportunity cost of making guns is constant. In this case:
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. it will be inefficient to produce 90 units of guns and 15 units of butter
b. it will be infeasible to produce 90 units of guns and 15 units of butter.
c. it will be inefficient to produce 15 units of guns and 90 units of butter.
d. it will be infeasible to produce 15 units of guns and 90 units of butter.
e. Both a and d are correct.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写2) The demand for apples is given by q = 60 – 4p and supply is given by p = 5. At the market equilibrium own price elasticity of demand in absolute terms is equal to:
a. 0.5 and supply is perfectly elastic
b. 0.25 and supply is perfectly elastic
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. 0.5 and supply is perfectly inelastic
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. 4 and supply is perfectly inelastic
e. none of the above
3) Assume that demand is downward sloping and supply is upward sloping. If there is an increase in supply and a decrease in demand:
a. price will increase and quantity will increase in equilibrium
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写b. price will decrease and quantity will increase in equilibrium
c. price will decrease and quantity will decrease in equilibrium
d. price will increase and quantity will decrease in equilibrium
e. none of the above
4) Which of the following will result in an increase in demand
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. an increase in income for a normal good.
b. a increase in the price of a complementary good
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. a decrease in the price of a substitute good
d. an expectation that price will increase in the future
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. both b and c are correct
5) Fifi and Bumble are best mates. Fifi currently owns a honey pot that she values at $10. Bumble values the honey pot at $8 and has $20 in his wallet.
a. The current allocation of the honey pot is Pareto inefficient.
b. Fifi and Bumble should be able to come to a mutually advantageous trade with respect to the honey pot.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. Given the current allocation, it will be possible to make both Bumble and Fifi better off.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. The current allocation of the honey pot is Pareto efficient.
e. a, b and c are all true.
6) Gordon used to work for MacSquander bank where he earned a yearly salary of $150,000. Gordon got fired as a result of the global financial crisis and found that the skills he had were not wanted by other employers. As a result, Gordon now runs a pie shop called Gordon’s Grumble Pie. Gordon pays rent of $100,000 per annum and spends $50,000 per year on other inputs. He earns $200,000 in total annual revenue. Gordon’s economic profit is
a. -$100,000. b. $0. c. $50,000.
d. $200,000. e. None of the above because the answer depends on how much Gordon is willing to work for other banks for.
7) The supply curve for blueberry juice is estimated to be Q=40+2p. Then:
a. supply is price elastic at all prices
b. supply is price inelastic at all prices
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 c. supply is only elastic at prices below 20
d. no general statements about price elasticity of supply can be made
e. none of the above.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写8) Producer surplus is:
a. Always at least as large as profit.
b. Revenue less the sum of marginal costs
c. Equal to profits plus fixed costs.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. b and c only are true.
e. a, b and c are all true.
9) Consider the following two demand curves for brie (d b ) and cheddar cheese (d c ) in the diagram below (note both have the same slope)
10) In a monopoly the consumer surplus is equals
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写a. 200 b. 300 c. 600 d. 900 e. 1100
11) When the market shifts from perfect competition to monopoly, which share of consumer surplus is transferred to the monopolist?
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 a. 200 b. 300 c. 400 d. 500 e. 600
12) An aspect of a good in which one person’s increased consumption of it does not decrease the amount available for consumption by others is called
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 a. non-rivalry. b. non-excludability. c. rivalry. d. excludability. e. exclusiveness.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写13) Costs to society will equal costs to a private firm when
a. harmful externalities occur in the firm’s market.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写 b. the firm misallocates resources in its market.
c. third parties bear some costs of producing the firm’s product.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写d. no externalities occur when the firm produces its product.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. beneficial externalities occur in the firm’s market.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写14) Which statement is true?
a. Revenue (or total expenditure) is maximised at the middle point of a linear (straight line) demand curve.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写b. When prices rise total expenditure rises when demand is elastic in the relevant range
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写c. Total expenditure rises when demand in inelastic in the relevant range and price falls
d. All of the above statements are true
e. None of the above
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写15) Which statement is true?
a. A positive tax always creates a deadweight loss
b. A tax that does not raise any revenue has a zero deadweight loss.
c. In a market where the domestic no trade price is above the world price, if demand is inelastic and the law of supply holds, a tariff does not create any deadweight loss.
d. If the law of demand holds and supply if perfectly inelastic, consumers pay for all of a tax.
一站式論文代寫,英国、美国、澳洲留学生Essay代寫—FreePass代写e. None of the above.