Escolar Documentos
Profissional Documentos
Cultura Documentos
May/June 2011
TIME: 3 hours
TOTAL MARKS: 160
Graph
Graph
Graph
Graph
A
B ***
C
D
The
The
The
The
7. In her article entitled School Choice, Caroline Hoxby does NOT argue
that:
a. Government should regulate the number of schools ***
b. Schools should have to compete with one another
c. Learners benefit from being able to choose between schools that
use a variety of teaching methods
d. Money should follow students
Vertical
Larger
More elastic ***
Less elastic
Marginal Revenue is
a. the increase in total revenue from selling one more unit of
output.
b. equal to P when the price elasticity of demand is infinite.
c. equal to P(1+1/e)
d. All of the above ***
12. If the inverse demand curve a monopoly faces is p = 100 - 2Q, and
MC is constant at 16, then profit maximization
a.
b.
c.
d.
13. A monopoly sets a price of $50 per unit for an item that has a
marginal cost of $10. Assuming profit maximization, the implicit
demand elasticity is
a. -0.2.
b. -0.8.
c. -5.0.
d. -1.25. ***
Use the following diagram to answer question 14.
14. The above figure shows the demand and marginal cost curves for a
monopoly. The deadweight loss of this monopoly equals
a.
b.
c.
d.
c + d + e + f.
c.
c + f. ***
h.
is
is
is
is
20. If the demand for air travel were to change so that business
travellers and vacationers have the same price elasticity of demand for
air travel,
a. airlines would charge the same price to each type of flyer. ***
b. airlines would still charge business flyers a higher fare since the
traveller's employer pays anyway.
c. airlines would counter by charging vacationers a higher fare.
d. airlines would be driven out of business.
21. Many theme parks charge an entrance fee and a per-ride fee equal
to zero. This is an example of
a. a two-tier tariff. ***
b. bundling.
no barriers to entry.
barriers to entry. ***
downward-sloping demand curves facing the firm.
product differentiation.
23. In the Cournot model, the output that a firm chooses to produce
increases as
a.
b.
c.
d.
[30
Question 3
marks]
[NB! Start a new answer book]
[35
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