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課程名稱︰經濟學原理與實習上 課程性質︰必修 /通識 A5* 課程教師︰魏凱立 開課學院:社會科學院 開課系所︰經濟學系 考試日期(年月日)︰100/11/11 考試時限(分鐘):120 是否需發放獎勵金:是 (如未明確表示,則不予發放) 試題 : Midterm Test 9:10~11:10 Short-Answer Questions 1. Why do demand curves slope downward ? 2. If Jill can make a table in 6 hours and a chair in 3 hours and Maude can make a table in 7 hours and a chair in 4 hours, (a) who has the comparative advantage in making tables ? (b) who has the absolute advantage in making tables ? 3. Ben walks Julie's dog once a day for NT$600 per week. Julie values this service at NT$700 per week, while the opportunity cost of Ben's time is NT$350 per week. The government places a tax of NT$300 per week in dog walkers. After the tax, what is the loss in total surplus ? Multiple Choice Questions (choose one answer) 4. Buyers of a good will bear the larger share of the tax burden when: (a) Supply is more elastic than demand for the product (b) Demand is more elastic than supply for the product (c) The tax is placed on the sellers of the product (d) The tax is placed on the buyers of the product 5. How are the buyers and sellers in a market affected if a binding price ceiling is imposed on the market ? (a) It always hurts both sellers and buyers (b) It hurts sellers but helps some buyers (c) It hurts some sellers but helps all buyers (d) It helps some sellers but it does not help all buyers 6. Under what conditions might a tax cause no deadweight loss ? (a) When demand is perfectly inelastic (b) When supply is perfectly inelastic (c) When the market is subject to negative externalities (d) Both (a) and (b) (e) All of the above (f) None of the above 7. When a country allows trade and becomes an importer of a good which of the following is true for domestic consumers ? (a) They will become better off (b) They will become worse off (c) It could either help or hurt them 8. When a country allows trade and becomes an importer of a good, which of the following is true for domestic producers ? (a) They will become better off (b) They will become worse off (c) It could either help or hurt them 9. Which of the following is true of an inferior good ? (a) Its price elasticity of demand is less than zero (b) People with low income will buy more of this good than people with high income (c) As one's income increases, one will buy more of this good, but the amount bought will increase slower than one's income (d) The supply curve for the good will have a steep upward slope 10. Which of the following is an example of a transaction cost ? (a) The construction cost of a road (b) The time you spend learning economics (c) The cost of pollution to society (d) The time you spend searching for a job 11. If demand for beef falls, but supply doesn't change, what happens ? (a) The price rises and the quantity sold falls (b) The price falls and the quantity sold falls (c) The price rises and the quantity sold rises (d) The price falls and the quantity sold rises 12. If there is a decrease in the supply of Brazilian coffee, how does this affect the market for Columbian coffee assuming the two are close substitutes ? (a) The supply of Columbian coffee will fall (b) The demand for Columbian coffee will fall (c) The supply of Columbian coffee will rise (d) The demand for Columbian coffee will rise (e) Both the demand for Columbian coffee and the supply of Columbian coffee will fall (f) Both the demand for Columbian coffee and the supply of Columbian coffee will rise 13. If demand is inelastic and supply decreases, how does this affect the total revenue received by sellers in this market ? (a) It increases (b) It decreases (c) It remmains the same (d) It might increase, decrease, or remain the same 14. If the price in a market is below the equilibrium price, what happens ? (a) The surplus will drive up prices (b) The surplus will drive down prices (c) The shortage will drive up prices (d) The shortage will drive down prices (e) Negative externalities will lower the surplus 15. Why does the supply curve often become more elastic as more time passes ? (a) Consumers don't like high prices (b) Price changes often have only temporary effects on producers (c) Highers prices draw more producers into the market and lower prices push producers out of the market (d) Producers react to price changes quicker than consumers react Short-Anser Questions 16. Suppose the equilibrium price for T-hsirts is NT$400 and the equilibrium quantitiy is 10,000 (a) If producers are too optimistic and produces 12,000 T-shirts, how does this affect the total surplus ? (b) If producers are too pessimistic and produce only 8,000 T-shirts, how does this affect the total surplus ? 17. Why might an increase in the tax rate cause a decrease in tax revenues ? 18. (a & b) State two valid arguments in favor of opening up the economy to international trade. (c & d) Then state two valid arguments against opening up the economy to international trade 19. Why do most countries subsidize education ? 20. Suppose a company sells ice cream at the equilibrium market price of NT$30 per scoop. Politicians are considering a new law which will establish an NT$50 per scoop price floor in the ice cream market. As a producer of ice cream, why might you oppose the government setting this higher price ? Two Problems 21. Consider the figure below. The equilibrium price is NT$28 and the equilibrium quantity is 140 units. The government decides to tax consumers in this market NT$12 for each unit they buy. (a) How much will the government gain in tax revenue ? (b) How much of this revenue will come from the consumer surplus ? (c) How much will come from the producer surplus ? (d) How much deadweight loss will be created ? P│ D S │ \ / Supply Curve: (100,12) (120,20) (140,28) (160,36) 36 │_____\________/____ │ │ \ / │ 32 │_____│\____/│_____ Demand Curve: (100,36) (120,32) (140,28) (160,24) │ ││ \ / ││ 28 │_____│__\/_________ (180,20) (200,12) │ ││ /\ ││ 24 │________/__\_________ ※ The slope of the demand curve is -5 │ ││/ │ \││ 20 │______/______\________ The slope of the supply curve is 2.5 │ ││ │ \│ 16 │____/__________\______ This picture is not precise actually except │ / │ │ ││ 12 │__/______________\______ the point of intersection │ / ││ │ ││ \ └──────────── 100│ 140 │180 │ │ 120 160 22. Use the same figure as in question 21 above. The equilibrium price is NT$28 and the equilibrium quamtity is 140 units. Now suppose the government opens up this country to trade. World price are NT$36. (a) Will this county import or export ? (b) How much will it import or export ? (c) Will the consumer surplus increase or decrease and by how much ? (d) Will the producer surplus increase or decrease and by how much ? --



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