Professor M Rush ECO 2023 Spring 2012 MIDTERM 1 Read all instructions on this page This test is governed by UF s academic honesty code It is intended to have 33 multiple choice questions and one extra credit question Please check to be sure your copy has all 33 Chose the best answer for each question The next is important Unless you are specifically told otherwise on this test do not assume that demand or supply is either perfectly elastic or perfectly inelastic On the bubble sheet please enter 1 Your name and initials 2 Your UF ID number 3 Form code A 4 Sign your name on the bubble sheet Check that the form code and UF ID number you bubbled in are correct now Also check to be sure your name is correct do it now I have heard a rumor that the ability to correctly record these had been mastered by a few students at FSU as well as a couple of accounting and journalism students I will investigate these rumors but in the meanwhile CHECK YOUR FORM CODE AND UF ID NUMBER IF YOU GET EITHER OF THESE WRONG YOUR TEST MIGHT NOT BE GRADED AND IF IT IS GRADED YOU WILL LOSE 6 POINTS which equals about 2 questions TURN OFF ALL CELL PHONES AND OTHER COMMUNICATION DEVICES You may not use a cell phone a Blackberry or any other sort of device that allows for communication as your calculator I have become increasingly concerned that some students are at a real disadvantage because they are unwilling to ask questions during the exam while others ask a lot of questions Hence to level the playing field I have decided to eliminate all questions during the test I don t like this policy but it seems the fairest policy Do not ask questions of me or the TA s in the interest of fairness I have instructed them not to answer any questions during the exam You will have one hour 60 minutes to complete the exam and bubble in all your answers and answer the extra credit question When the TAs say that time is up you must hand in your exam We will not give extra time to finish bubbling in the answers so be sure you are done when the 60 minutes are up Of course you may hand in your test at any time before the 60 minutes are up E C O 2 0 2 3 M I D T E R M 1 S P R I N G 2 01 2 An answer key will be posted on the class web page later this evening at about 10 00 PM The test scores will be on class web page within a few days Once you see the answer key you might have a question about why one answer is right and another is wrong For these questions email me at mark rush warrington ufl edu Do NOT email the grader about these questions After the scores are posted if you think your posted score is incorrect then email the grader at eco2023 grader warrington ufl edu If you email me about your test score I will not forward the email nor respond to you you MUST email the grader You have one week after the curved score is posted to request a grade check After a week the score will not be changed If the web reports what you bubbled in for each question and you ask the grader to check an answer because you believe you bubbled in something other than what is reported and the reported answer on the web is correct you will lose 1 additional question EXTRA CREDIT QUESTION INSTRUCTIONS There is an extra credit question on the last page You can earn up to 3 points added to your exam test score If you choose to answer the extra credit question be sure to follow all the instructions on the page with the extra credit question and provide all the required information DO IT LEGIBLY IF WE CANNOT READ YOUR NAME AND OR UF ID YOU WILL NOT GET ANY EXTRA CREDIT When you hand in your test you must hand in the extra credit page even if you have not answered the question You may copy your answer to the extra credit question in the space below I will announce in class when the extra credit questions are graded and will post the grades on the class page but it will take several weeks Do not email me or the grader for questions about when the extra credit will graded I will announce this in class THERE IS NO APPEAL ABOUT THE SCORE ON THE EXTRA CREDIT IT IS WHAT IT IS 2 E C O 2 0 2 3 M I D T E R M 1 S P R I N G 2 01 2 A B C D A B C D E A B C D E A B C D E 1 In the figure above the opportunity cost of producing another computer is higher at A than at B higher at B than at A the same at all points on the PPF different at most points along the frontier but equal at points A and B because they are equally distant from the axes 2 When petroleum is refined the products of the refining include both gasoline and heating oil fuel Suppose the price of heating oil rises Based on these points the equilibrium price of a gallon of gasoline and the quantity of gasoline 3 If the marginal benefit from the last taco produced and consumed is less than the marginal cost of producing the taco then tacos are the efficient quantity and there a deadweight loss falls decreases falls increases falls does not change rises does not change rises increases overproduced compared to is overproduced compared to is not underproduced compared to is underproduced compared to is not equal to is not 4 This is an out of the book question from Chapter 5 A tax is imposed on the sellers of a product The consumers will pay the full amount of the tax if demand is elastic demand is inelastic demand is perfectly elastic demand is perfectly inelastic None of the above are correct because the tax is imposed on the seller so sellers pay the tax 3 E C O 2 0 2 3 M I D T E R M 1 S P R I N G 2 01 2 5 The above figure shows the market for pizza Which panel shows the effect of a decrease in income if pizza is a normal good 6 Thailand has been hit with massive floods that destroyed or damaged many factories that produce hard drives for computers As a result the equilibrium price of a hard drive and the equilibrium quantity A B C D A B C D E A B C D Figure A Figure B Figure C Figure D falls decreases rises increases falls does not change rises decreases None of the above are correct larger than the same as …
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