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Econ B251 Quizzes 1-9 Review Questions and Answers
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Econ B251 Quizzes 1-9 Review Questions and Answers
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Econ B251 Quizzes 1-9 ReviewQuestions and Answers
- ANSWER-The marginal social cost curve is:
a) Marginal private costs plus Marginal external costs
b) Marginal private benefits minus Marginal external costs
c) Marginal private costs minus Marginal external costs
d) Marginal private benefits plus Marginal external costs
$10 - ANSWER-For the market represented in the graph above, if the government sets
a price floor of $16 what sized deadweight loss would occur?
$12 - ANSWER-For the market represented in the graph above, if the government sets
a per unit tax of $3, how much government revenue will they receive from the tax?
$13.50 - ANSWER-For the market represented in the graph above, if the government
sets a per unit tax of $9, what sized deadweight loss will occur in the market?
$16 - ANSWER-Using the budget constraint shown above, if the price of melons is $10,
what is the price of lemons?
$3033 - ANSWER-A farmer can produce 1 ton of Apples for $7,971, 2 tons of apples for
$11,004 and 3 tons of apples for $16,543. What is the marginal cost of the 2nd ton of
apples?
$519 - ANSWER-Assume GDP starts at a value of $154 and grows at a rate of 4% after
31 years what will GDP be? Round to the nearest dollar.
$80 - ANSWER-For the market represented in the graph above, if the government sets
a price floor of $16 what is the maximum amount producers would pay in search costs?
0.02 - ANSWER-If price changes from 1 to 9 and as a result, quantity changed from 25
to 24 what is the price elasticity of demand using the midpoint method? (round to the
nearest hundredth [2 decimal places]) Remember, by convention we always report
elasticity of demand as a positive number in this class.
0.88 - ANSWER-Assume a nation has constant opportunity costs. If the nation can
produce at most 7 dishwashers or 8 cars, what is the opportunity cost of producing a car
in terms of dishwashers? (round to the nearest hundreath [2 decimal places])
12 - ANSWER-Using the table above, what is the marginal utility of the 4th unit of
raspberries?
120 - ANSWER-In the graph displayed, what is the value of producer surplus?
, 13.5 - ANSWER-Given the graph above, if the government introduces a subsidy of $9
per unit, what sized deadweight loss will occur?
18 - ANSWER-Given the graph above, if the government introduces a subsidy of $3 per
unit, how much will the entire subsidy program cost?
180 - ANSWER-In the graph displayed, if 30 units were bought and sold in the market
(instead of the equilibrium quantity) what would total surplus be as a result?
195 - ANSWER-In the graph displayed, what is the value of total surplus?
5 - ANSWER-For the image above, the red line is supply, which in this case is marginal
social benefit. Without government intervention to correct the externality, the
deadweight loss to society here would be:
50 - ANSWER-In the graph displayed, if only 10 units were bought and sold in the
market (instead of the equilibrium quantity) what sized deadweight loss would occur?
6 - ANSWER-According to the "rule of 70" if an economy has a growth rate of 11%
approximately how many years will it take for output to double? (Round to the nearest
year)
80 - ANSWER-In the graph displayed, what is the value of consumer surplus?
a) 3:4 - ANSWER-Using the table above, and assuming a consumer has a budget of
$30 and that each unit of raspberries costs $6 and that each unit of strawberries cost
$3. This consumer will decide to purchase _________ units of raspberries and
________ units of strawberries.
a) 3:4
b) 2:3
c) 5:5
d) 2:6
a) A surplus - ANSWER-If the supply for a good increases but the market price does not
immediately change, this will most likely cause:
a) A surplus
b) The market to clear
c) A shortage
a) College tuition is higher for out of state students than in state students. - ANSWER-
Which of the following statements is "positive" in nature?
a) College tuition is higher for out of state students than in state students.
b) College tuition is too inexpensive.
c) College tuition is too expensive.
d) College tuition should be free for all US citizens
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