关键词 > ECC5953/ECF5953

ECC5953/ECF5953 Economics Mid-Semester Test

发布时间：2022-08-18

Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

Semester One 2017

Mid-Semester Test

ECC5953/ECF5953

Economics

1. Which of the following is an example of a market?

A.	an auction for agricultural products
B.	the purchase and sale of software over the internet
C.	the purchase and sale of illegal drugs in secret locations in a city
D.	all of the above

2. Graphically, the market demand curve is:

A.	the vertical sum of individual demand curves
B.	steeper than any individual demand curve that comprises it
C.	greater than the sum of the individual supply curves
D.	the horizontal sum of individual demand curves

3. Suppose that the demand for crocodile leather falls after a decrease in price of snake skin. This would mean that crocodile leather is:

A.	a substitute good
B.	a normal good
C.	a complementary good
D.	an inferior good

4. If the government imposes a price control on the price of wine so that no bottle can be sold for more than $15, you would expect:

A.	supply in that market will decrease
B.	quantity supplied in that market will decrease
C.	supply in that market will increase
D.	demand in that market will not change

5. Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a 10-year period because:

A.	buyers tend to be much less sensitive to a change in price when given more time to react
B.	buyers will have substantially more income over a 10-year period
C.	buyers tend to be much more sensitive to a change in price when given more time to react
D.	none of these answers are correct

6. Suppose the price of product X is reduced from $16.00 to $12.00 and, as a result, the quantity of X demanded increases from 300 to 450. Using the midpoint method, the price elasticity of demand for X in the given price range is:

A.	1.40
B.	1.00
C.	0.40
D.	0.29

7. When demand is elastic in the current price range:

A.	an increase in price will increase total revenue because the decrease in quantity demanded is less than the increase in price
B.	an increase in price will decrease total revenue because the decrease in quantity demanded is greater than the increase in price
C.	a decrease in price will decrease total revenue because the increase in quantity demanded is smaller than the decrease in price
D.	a decrease in price will not affect the total revenue

8. Last year, Joan bought 50 kg of hamburger mince when the household income was $40 000. This year, the household income was only $30 000 and Joan bought 60 kg of hamburger mince. All else being constant, Joan’s income elasticity of demand for hamburger is:

A.	positive, so Joan considers hamburger to be an inferior good
B.	positive, so Joan considers hamburger to be a normal good and a necessity
C.	negative, so Joan considers hamburger mince to be an inferior good
D.	negative, so Joan considers hamburger mince to be a normal good

9. Suppose that after a five per cent increase in the price of timber, a forestry company increases its supply of timber by 10 per cent in the next three months, and 15 per cent by 12 months. This means that the elasticity of supply is _____.

A.	3 at three months and 2 at 12 months
B.	0.5 at three months and 0.3 at 12 months
C.	2 at three months and 3 at 12 months
D.	0.3 at three months and 0.5 at 12 months

10. If the cross-price elasticity of demand is 1.25, then the two goods are:

A.	complements
B.	luxuries
C.	normal goods
D.	substitutes

11. If the demand for illegal drugs is inelastic, drug education campaigns should:

A.	reduce both drug use and drug-related crime
B.	reduce drug use and increase drug-related crime
C.	increase both drug use and drug-related crime unchanged
D.	increase drug use and reduce drug-related crime

12. Suppose the equilibrium price of bananas is $5 and a price ceiling of $7 is implemented. This will result in:

A.	a shortage, as the price ceiling is above the equilibrium price
B.	a surplus, as the price ceiling is above the equilibrium price
C.	no change in the quantity of bananas sold
D.	the demand for bananas to exceed the supply of bananas

13. Workers with high levels of skill and experience are not affected by the minimum wage because:

A.	they belong to unions
B.	they are not legally guaranteed the minimum wage
C.	they generally earn wages less than the minimum wage
D.	their equilibrium wages are well above the minimum wage

14. To fund new green energy research, suppose the government requires every buyer of a new car to pay a $100 tax. When compared to the pre-tax equilibrium, such a tax will:

A.	make buyers $100 worse off without affecting sellers
B.	make buyers $100 worse off, but make sellers better off
C.	increase the price sellers receive for cars
D.	make both buyers and sellers worse off, but we cannot say by how much without more information

15. In the end, tax incidence:

A.	is determined by the policymakers
B.	falls entirely on the buyers
C.	depends on the relative elasticities of supply and demand
D.	falls entirely on the sellers

16. Suppose consumer income increases. If wine is a normal good, what will happen to the equilibrium price and producer surplus?

A.	both the equilibrium price and the producer surplus will decrease
B.	both the equilibrium price and the producer surplus will increase
C.	the equilibrium price will decrease and the producer surplus will increase
D.	the equilibrium price will increase and the producer surplus will decrease

17. Producer surplus measures all of the following EXCEPT the:

A.	total value of a good to sellers
B.	amount sellers receive above the minimum they would accept
C.	benefit to sellers of participating in a market
D.	amount sellers are paid less the amount they were willing to accept

18. We can say that the allocation of resources is efficient if:

A.	producer surplus is maximised
B.	consumer surplus is maximised
C.	total surplus is maximised
D.	none of the above is correct

19. Markets work well for some goods but poorly for others. For which of the following goods would markets be expected to work well?

A.	clean air
B.	restaurants
C.	wild elephants
D.	public healthcare

20. A huge, very busy museum in Europe is:

A.	non-excludable and rival
B.	non-excludable and non-rival
C.	excludable and rival
D.	excludable and non-rival

21. Because the benefit each citizen receives from having an educated community is a public good:

A.	the free-rider problem causes the private market to undersupply education to the community
B.	the government can potentially help the market reach a socially optimal level of education
C.	a tax increase to pay for education could potentially make the community better off
D.	all of the above are true

22. Lettuce Eat, a vegetarian cafe, exhibits diminishing returns to labour. If the cost of each meal is constant and labour is the only other input, then the total cost-curve will:

A.	become flatter as meal production increases
B.	become steeper as meal production increases
C.	will stay constant as meal production increases
D.	we cannot tell without more information

23. At low output levels a firm’s average total cost tends to be high because:

A.	marginal costs are increasing
B.	variable costs are spread over only a few units of output
C.	average fixed cost is large
D.	there is a shortage of experienced workers

24. The marginal cost curve will intersect:

A.	average variable cost at its minimum
B.	average fixed cost at its minimum
C.	average total cost at its minimum
D.	both the average variable cost and the average total costs at their minimums

25. Constant returns to scale occur when:

A.	long-run average total costs are constant as output increases
B.	marginal product of labour is falling
C.	the firm’s long-run average cost curve is falling as output increases
D.	the firm’s long-run average cost curve is rising as output increases