Professor M Rush ECO 2023 FALL 2013 MAKE UP TEST Read all instructions on this page This test is governed by UF s academic honesty code This test has 34 questions IF you are using this test to make up for missing either Midterm 1 or 2 answer the first 30 questions if you using this test to make up for missing the final exam answer all 34 questions Choose the best answer for each question 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 if 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 investigated the rumor that the ability to correctly record these had been mastered by a few students at FSU This rumor turned out to be false But the rumor that an accounting major and a journalism major did successfully record these on a test is true These students have since been bronzed and are on display outside their respective colleges to serve as an inspiration for all other accounting and journalism students 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 3 POINTS TURN OFF ALL CELL PHONES AND OTHER COMMUNICATION DEVICES You may not use a cell phone or any other sort of device that allows for communication as your calculator E C O 2 0 2 3 M A K E U P E X A M F A L L 2 01 3 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 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 An answer key will be posted on the class web page after 10 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 2 E C O 2 0 2 3 M A K E U P E X A M F A L L 2 01 3 1 In the long run can make an economic profit and in the long run will incur an economic loss a monopoly firm a perfectly competitive firm no firm no firm a monopolistically competitive firm a perfectly competitive firm a monopoly firm no firm None of the above are correct 2 More people are eating high protein diets Eggs are high in protein As a result the price of an egg will and the quantity will 3 A firm s total revenue definitely increases if the price of the good 4 If an early frost destroys most of the apple crop the price of a pound of apples will and the quantity of apples will 5 The price elasticity of demand for corn is 0 5 and the price of a bushel of corn rises 10 percent As a result the quantity demanded decreases by percent rise increase rise decrease fall increase fall decrease rises and demand is elastic rises and demand is inelastic rises and demand is unit elastic falls and supply is inelastic None of the above are correct rise increase rise decrease fall increase fall decrease 20 2 10 5 6 Firms in monopolistic competition always will earn an economic profit set their price equal to their marginal cost set their price above their marginal cost produce at the minimum average total cost A B C D E A B C D A B C D E A B C D A B C D A B C D 3 E C O 2 0 2 3 M A K E U P E X A M F A L L 2 01 3 7 Which of the following business practices if proven to exist will always be held to be illegal under U S antitrust law Tying arrangements Price fixing among competitors Exclusive dealing Setting a price too low in order to drive rivals out of business All of the above 8 Which of the following could cause the price of an airline ticket to rise and the quantity of airline travel to decrease An increase in income if airline travel is a normal good An increase in income if airline travel is an inferior good A fall in the price of travel by bus a substitute for travel by airline A rise in the price of the jet fuel used by airliners 9 Taxes can yield the efficient level of pollution if the tax is set equal to marginal benefit of the pollution marginal external cost of the pollution marginal social cost of the pollution marginal private cost of the pollution equilibrium price of the pollution 10 There is no deadweight loss if the regulatory rule for a natural monopoly is an average cost pricing rule sets the price at an amount that enables the regulated firm to earn a specified rate of return on its capital is a marginal cost pricing rule prevents the firm from engaging in any form of price discrimination 11 An NFL football game played in a non crowded stadium is not a public good because it is nonexcludable excludable rival both answers …
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