UA EC 110 - Exam 2 Sample Test (11 pages)

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Exam 2 Sample Test



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Exam 2 Sample Test

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Pages:
11
School:
University of Alabama
Course:
Ec 110 - Prin of Microeconomics

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Principles of Microeconomics EC 110 Exam 2 IMPORTANT INSTRUCTIONS 1 WRITE YOUR NAME STUDENT NUMBER YOUR ROW AND SEAT NUMBER ON THIS TEST OR IT WILL NOT BE RETURNED TO YOU 2 WRITE YOUR NAME STUDENT NUMBER AND VERSION NUMBER ON THE SCANTRON 3 WRITE THE COLOR OF YOUR QUIZ AT THE TOP OF THE SCANTRON NAME STUDENT NUMBER ROW SEAT Multiple Choice Identify the letter of the choice that best completes the statement or answers the question 1 A legal maximum price at which a good can be sold is a price a floor b stabilization c support d ceiling 2 Suppose Lauren Leslie and Lydia all purchase bulletin boards for their rooms for 15 each Lauren s willingness to pay was 35 Leslie s willingness to pay was 25 and Lydia s willingness to pay was 30 Total consumer surplus for these three would be a 15 b 30 c 45 d 90 3 When a good is taxed a both buyers and sellers of the good are made worse off b only buyers are made worse off because they ultimately bear the burden of the tax c only sellers are made worse off because the government holds them responsible for sending in the tax payments d neither buyers nor sellers are made worse off since tax revenue is used to provide goods and services that would otherwise not be provided in a market economy 4 The price elasticity of demand measures a buyers responsiveness to a change in the price of a good b the extent to which demand increases as additional buyers enter the market c how much more of a good consumers will demand when incomes rise d the movement along a supply curve when there is a change in demand 5 Refer to the figure above The amount of tax revenue received by the government is equal to the area a P3 A C P1 b A B C c P2 D A P3 d P1 C D P2 6 Two goods are complements if a decrease in the price of one good a decreases the quantity demanded of the other good b decreases the demand for the other good c increases the quantity demanded of the other good d increases the demand for the other good 7 Consumer surplus a is the amount of a



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