Question 1 (4 points) Listen The difference between the demand price and the supply price at the quota limit is: O a) usually large enough to cause a surplus. (b) the opportunity cost of using or buying a good, subject to an import quota. ( c) the quota rent. (d) the rent received by landlords who own rent-controlled apartments.Question 2 (4 points) -I: (Figure: The Market for Popeye-s Sandwiches) Use Figure: The Market for Popeyes Sandwiches. How much to1al surplus would be lost if there were a quota limiting the number of sandwiches that could be legally exchanged to eight? Price $15 8 10 Quantity 0 a) $30 0 b) 33 O C) $24 0 d) $27 Question 3 (4 points) mu (Table: Market for Milk) Use Table: Market for Milk. If the government imposes a price ceiling of $0.90 per pound of milk, the quantity of milk actually purchased will be million pounds. Table: Market for Milk Note: P = price per gallon of milk in $ 99 = Quantity demanded in gallons per week 93 = Quantity supplied in gallons per week Question 4 (4 points) ) Listen (Table: Market for Milk) Use Figure: Market for Milk. If the government imposes a price floor of $1.20 per gallon of milk, the quantity of milk actually purchased will be gallons per week. Table: Market for Milk P QD es $1.20 9.0 12.0 1.10 9.5 11.0 1.00 10.0 10.0 0.90 10.5 9.0 0.80 11.0 8.0 Note: P = price per gallon of milk in dollars QD = Quantity demanded in gallons per week Qs = Quantity supplied in gallons per week ( a) 1.5 Ob) 10.0 O c) 9.0 O d) 10.5Question 5 (4 points) ) Listen (Figure: The Alaskan Crab Market) Use Figure: The Alaskan Crab Market. If the government imposes a price ceiling of $15, the quantity of crab exchanged will be: Price of crab (per pound) $22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 0 250 500 750 1,000 1,250 1,500 1,750 Quantity of crab (pounds) ( a) 1,500 pounds. ( b) 500 pounds. c) 750 pounds. ( d) 1,000 pounds.Question 6 (4 points} emu SuppOse that apples and pomegranates are substitutes in consumption. The pomegranates will increase when apple prices rise. 0 a) quantity demanded of O b) supply of O C) demand for O C\" quantity supplied of Question 7 (4 points) -I: (Figure: The Supply of Apple TV Rentals) Use Figure: The Supply of Apple TV Rentals. An increase in the price of online movies sold by movie producers to rental outlets like Amazon and Apple TV would result in the change illustrated by the move from: (d) Priced Apple" rental 0 Quantity (per Mod) a) s to t in panel C. b) p to g in panel B. c) n to o in panel A. O d) u to v in panel D.Question 8 (4 points) all Macaroni and cheese is an inferior good. If students' incomes at your college increase, the e'ect on macaroni and cheese consumption will be: 0 a) no change in demand. 0 b) an increase in demand. 0 C) an increase in the quantity demanded. 0 d) a decrease in demand. Question 9 (4 points) () Listen Which factor would cause an INCREASE in the supply of a good? (a) expectations that the price of the good will rise (b) an increase in the price of the good (c) a decrease in the number of firms offering the good. (d) an advance in the technology of producing the goodQuestion 10 (4 points) I: It is almost certain that the equilibrium quantity will fall when: 0 a) the supply curve shifts to the right, and the demand curve shis to the left. O b) the quantity demanded is greater than the quantity supplied. 0 C) supply and demand both increase. Q d) supply is greater than demand. Question 11 (4 points) mu Which statement demonstrates how people respond to incentives to make themselves better off? 0 a) More students major in mathematics when they hear that the salaries of statisticians are rising. O to Students are assigned lab partners through a lottery system. 0 C) Students and faculty are encouraged to wear school colors during annual alumni week to support the college athletic teams. 0 d) Students are encouraged to donate blood because it is the right thing to do. Question 12 (4 points) all An economy is efficient when: 0 a) all opportunity costs have been eliminated. O b) all opportunities to make some people better off without making other people worse of? have been exhausted. O C) the problem of resource scarcity has been eliminated. Q d) output is distributed equally to all participants in the market. Question 13 (4 points) I: Susan is attending university and majoring in actuarial mathematics. Susan is thereby accumulating: O a) physical capital. 0 b) human capital. O '3 land. Q d) labor. Question 14 (4 points) Listen Jacob is an economist working at the Federal Reserve Bank of New York. While having lunch with his mother, she asks him to tell her what efficiency means. As a proud son, Jacob tells his mother that economists define an efficient use of resources as a situation in which: ( a) all persons receive an equal share of resources. (b) all persons can be made better off without making anyone worse off. ( c) all persons are made worse off when one person is made better off. (d) one person can be made better off but only by making another person worse off.Question 15 (4 points) all Emma spends $40,000 for one year's tuition at university. The opportunity cost of one year at university for Emma is: O a) 540,000. 0 b) whatever she would have purchased with the $40,000 had she not attended university. 0 C) whatever she would have earned had she not attended university. d) whatever she would have purchased with the $40,000 plus whatever she would have earned had she not attended university. Question 16 (4 points) (Table: Statistics Textbooks) The table Statistics Textbooks shows how much money four consumers would be willing to pay for a new statistics textbook. If the price of the textbook is $100, what is the total consumer sutplus received by these consumers? Table: Statistics Textbooks Alma Question 17 (4 points) an The establishment of is a system in which valuable items in the economy have specic owners who can dispose of them as they choose. 0 a) Public goods O b) Agent dominance O C) Economic signals 0 d) Property rights Question 18 (4 points) I: A consumer's willingness to pay is the: O a) the cost of producing a good or service. 0 b) the price at which a good or service is sold. 0 C) maximum price at which he or she would sell a given good or service. Q d) maximum price at which he or she would buy a given good or service. Question 19 [4 points) I: Which scenario is most likely to DECREASE the consumer surplus in the market for wool sweaters? O a) Consumer incomes fall. (Assume wool sweaters are a normal good.) 0 b) The price of industrial sewing machines used to produce garments increases. 0 C) There is a bountiful wool harvest. Q d) The price of polyestet sweaters falls. Question 20 (4 points) ) Listen (Table: Kombucha Market) There are two consumers, Archie and Mandeep, in the market for kombucha. Their willingness to pay for each kombucha is shown in the table Kombucha Market. There are two producers of kombucha, Carla and Davina, and their costs are also shown. The equilibrium price of kombucha is $8, and the equilibrium quantity is 5. At the equilibrium price and quantity, Carla sells kombucha, and her producer surplus is Table: Kombucha Market Kombucha Archie's Mandeep's Carla's Cost Davina's Bottles Willingness to Pay Willingness to Cost Pay First $12 $11 $3 $4 Second 10 9 6 Third 8 7 8 9 Fourth 6 5 10 11 ( a) three; $8 Ob) two; $3 O c) four; $2 O d) one; $5Question 21 (4 points) ) Listen Which statement is TRUE about the circular-flow diagram? (a) Money flows from households to firms, as households offer factors of production for sale. Ob) Money flows in the same direction as goods and services and factors of production. O C) Households are the primary demanders of goods and services. ( d) Firms are the secondary suppliers of goods and services.Question 22 (4 points) ) Listen (Figure: Comparative Advantage) Use Figure: Comparative Advantage. The opportunity cost of producing 1 box of apples for Canada is _box(es) of cheese. Canada France Apples Apples 100 100 90 80 70 60 50 40 T 30 10 0 20 40 60 80 100 120 140 160 180 200 0 20 40 60 80 100 120 140 160 180 200 Cheese Cheese ( a) 4 b) 0.25 O c ) 10 O d) 1Question 23 (4 points) Listen (Figure: Savannah's Production Possibilities) Use Figure: Savannah's Production Possibilities. Which point or points represent(s) an inefficient combination of bananas and pineapples? Quantity of bananas 35 D 30 A 25 B 20 15 10 O 10 20 30 40 50 Quantity of pineapples ( a) B and D ( b) A and B c) C only O d) A onlyQuestion 24 (4 points) I: The circular-ow diagram represents the market for and the market for O a) household purchases; rm prots 0 b) money prots; goods and services 0 C) factors of production; money lending Q d) goods and services; factors of production Question 25 (4 points) )Listen (Figure: Illustrating Slope) Use Figure: Illustrating Slope. In the graph, line 1 depicts X and Y as: Y ... ....... ........... 0 X O a) positively related. b) nonlinearly related O c) negatively related. ( d) unrelated