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Ec 202 Second Midterm Questions And Correct Answers

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EC 202 SECOND MIDTERM QUESTIONS AND CORRECT ANSWERS

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By how much does consumer surplus decrease after the imposition of the tax?


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3 million

(4x2=8/2=4 and 2x1=2/2=1... 4-1=3 million)




suppose following the election of Trump, the US business community become more
optimistic about the profitability of capital invested in US industries. Ceteris paribus, it
follows that the ______ loanable funds would _______, putting _________ pressure on the
equilibrium interest rate.


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, demand for; increase; upward




which of the following is the best example of a good or service that would be
considered non-rival and non-excludable?


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the US Navy




In the figure below, what is the producer surplus when the net price received by
sellers is $27.50?


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$337.50

((27.5-5.0)= ((22.5x30)/2) = 337.5




Suppose earlier this morning, your broker recommended you buy german
government bonds for your personal investment portfolio. Ceteris paribus, it follows
that she thinks the market is currently _____ German debt, and she expects German
bond yields to ______ in the future.


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under-pricing; decrease

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