ECON 201 (H) (DEPARTMENT OF ECONOMICS) MIDTERM
EXAMINATION WINTER (STUDY GUIDE SOLUTION)
CONCORDIA UNIVERSITY (VERSION I)
Concordia University
Department of Economics
ECON 201 (H)
MIDTERM EXAMINATION, Winter 2018
Instructor: Eesha Sen Choudhury
th
Date: 28 February 2018
Time: 11:45am – 1:00pm
Version I
(8 Pages)
Multiple Choice Questions. Circle the best answers.
1. If the government imposes a percentage tax on consumers, the more inelastic the supply curve, the
A) The lower the tax revenue
B) Larger the deadweight loss
C) Smaller the drop in equilibrium quantity
D) All of the answers are correct
Suppose you decrease the quantity demanded for milk from 5 liters per week to 4 liters per week
2. because of a fall in the price of X from $10 to $6. What is the cross price elasticity for milk over
these ranges?
A) 4/9
B) -1
C) 1
D) -4/9
3. Rent control is an example of a price , which is set the equilibrium price.
A) Ceiling; below
B) Floor; above
C) Floor; below
D) Ceiling; above
4. Which of the following statements is CORRECT about a production possibilities frontier (PPF)?
A) Only macroeconomics, but not microeconomics, studies PPFs
, B) If an economy is producing at an output level that is higher than Ycapacity (Yc), this economyis
producing at a point inside its PPF
C) If the opportunity cost of producing more of one good in terms of the other good is constant, the
PPF is concave
D) If an economy sees an improvement in its technological level, both the size and shape of itsPPF
can change
If the demand for cement in Montreal is given by Q=5-P and the demand in Quebec city is Q=10-2P,
5.
what is the total demand for cement?
A) Q=15-1.5P
B) Q=5-3P
C) Q=10-P
D) Q=15-3P
6. What is the meaning of a deadweight loss?
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