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 (助教名:李文基)
開課學院：社會科學院
開課系所︰經濟學系
考試日期（年月日）︰100.11.04
考試時限（分鐘）：50
是否需發放獎勵金：是
（如未明確表示，則不予發放）
試題 :
Principles of Economics I: Quiz (I)
Instructions: This quiz takes for 50 minutes. Please write down any your
answers in English briefly. Translation machines and any calculators with
memory function are not allowed.
Part One: Multiple Choice (20 questions, 60%)
Please write the best answer directly on your answer sheet.
1. Total surplus in a market will increase when the government
(A) imposes a binding price floor or a binding price ceiling on that market.
(B) imposes a tax on that market.
(C) Both (A) and (B) are correct.
(D) Neither (A) nor (B) is correct.
2. The opportunity cost of obtaining more of one good is shown on the
production possibilities frontier as the
(A) amount of the other good that must be given up.
(B) market price of the additional amount produced.
(C) amount of resources that must be devoted to its production.
(D) number of dollars that must be spent to produce it.
3. A tariff on imported steel in the U.S. would:
(A) raise the total surplus in the U.S. market for steel.
(B) lower the total surplus in the U.S. market for steel.
(C) raise the total surplus of foreign exporters and consumers of steel.
(D) raise the U.S. standard of living at the expense of that of the exporting
country.
4. East Taipei bars frequently offer “free” snack during Happy Hour because:
(A) they get discounts on snack from wholesalers.
(B) they can increase the demand for drinks this way, because snack and drinks
are complementary goods.
(C) snack and drinks are substitute goods, so lowering the price of snack
increases the demand for drinks.
(D) they don’t always behave rationally.
5. Of the following, the main reason why OPEC used to be unable to keep oil
prices high is that:
(A) massive new petroleum discoveries have increased the supply.
(B) supply tends to be more inelastic in the long run.
(C) government regulations have prevented it.
(D) demand tends to become more elastic in the long run.
6. Good A and good B are substitutes in production. The demand for good A
increases so that the price of good A rises. The increases in the price of
good A shifts the
(A) demand curve for good B leftward.
(B) demand curve for good B rightward.
(C) supply curve for good B leftward.
(D) supply curve for good B rightward.
7. Which of the following would not increase the demand for beer?
(A) A new NTU study concludes that beer cures colds and skin disorders.
(B) A price war results in beer selling for NT$5/bottle.
(C) Night clubs begin giving away spicy snacks to their customers.
(D) The price of a substitute, hard liquor, rises.
8.An increase in computer imports that results in an increased market supply is
(A) good for computer manufacturers because it raises prices for their products
but bad for consumers because it raises prices consumers pay for computers.
(B) bad for computer manufacturers because total revenue will fall but good for
consumers because prices for computer will fall.
(C) good for computer manufacturers because it raises prices and also good for
consumers because more output is available for consumption.
(D) bad for computer manufacturers because total revenue will fall and bad for
consumers because computer manufacturers will raise the price of computers
to increase their total revenue.
9. If the income elasticity of demand for good X with respect to the income of
a consumer is negative, then good X is
(A) an inferior good.
(B) a normal good.
(C) a complement.
(D) a substitute.
10. When supply and demand both increase, equilibrium
(A) price will increase.
(B) price will decrease.
(C) quantity may increase, decrease, or remain unchanged.
(D) price may increase, decrease, or remain unchanged.
11. Pork can be used to produce either bacon or sausage, but not both. If the
price of bacon rises for some reason, if everything else remains equal,
(A) the price of sausage will increase.
(B) the price of sausage will fall.
(C) the demand of bacon will decrease.
(D) the supply of bacon will increase.
12. A tax is most likely to be paid by the seller when the:
(A) tax is levied on the seller.
(B) demand is inelastic and supply is elastic.
(C) demand is elastic and supply is inelastic.
(D) supply and demand are elastic.
13. Deadweight loss is greatest when
(A) Both supply and demand are relatively inelastic.
(B) Both supply and demand are relatively elastic.
(C) Supply is elastic and demand is perfectly inelastic.
(D) Demand is elastic and supply is perfectly inelastic.
14.
http://imgur.com/iLginup http://imgur.com/knkGW1d http://imgur.com/tXxXTjm
Refer to Figure above. In which market will the majority of the tax burden fall
on buyers?
(A) market (a)
(B) market (b)
(C) market (c)
(D) All of the above.
15. Suppose that the demand for picture frames is somewhat inelastic and the
supply of picture frames is elastic. A tax of $1 per frame levied on
picture frames will increase the total price (including tax) paid by buyers
of picture frames by
(A) less than $0.50.
(B) $0.50.
(C) between $0.50 and $1.
(D) $1.
16.
http://imgur.com/qz2Mf8s
Refer to Figure above. At the quantity Q3,
(A) the market is in equilibrium.
(B) consumer surplus is maximized.
(C) the sum of consumer surplus and producer surplus is maximized.
(D) the marginal value to buyers is less than the marginal cost to sellers.
17.
http://imgur.com/vcOgiG0
The figure illustrates the market for wool in New Zealand.
Refer to Figure above. Relative to the free market, which area represents the
change in consumer surplus after price regulation?
(A) A
(B) A+B
(C) A+B+D
(D) B+D
18. A shortage exists in a market if
(A) there is an excess supply of the good.
(B) the situation is such that the law of supply and demand would predict a
decrease in the price of the good from its current level.
(C) the current price is below its equilibrium price.
(D) quantity supplied exceeds quantity demanded.
19. The effect of a tax on buyers is greater than on sellers if the tax is
levied on
(A) buyers.
(B) sellers.
(C) buyers and sellers equally.
(D) None of the above. It is because the tax will have the same effect
regardless of whom it is levied.
20. Tom takes 20 minutes to wash a shirt and 5 minutes to make a sandwich.
Jerry takes 15 minutes to wash a shirt and 3 minutes to make a sandwich.
In which activity does Tom have a comparative advantage?
(A) Washing shirts.
(B) Making sandwiches.
(C) Both washing shirts and making sandwiches.
(D) Neither washing shirts nor making sandwiches.
Answers: DABBD / CBBAD / ACBBC / DACDA
Part Two: Quick questions (4 questions, 40%)
Please write your explanations on your answer sheet.
1. True or False. Please keep your answer briefly, credits will be subtracted
if your answer too long.
(1) It would be a good thing if only those students with the most talent for
medicine were allowed to become doctors. (Assume that there are enough such
students so that we could still have the same number of doctors that we have
today.)
(2)At a price of $500,000 apiece, Japanese producers are willing to sell any
quantity of compact cars that Taiwanese want to buy. An excise tax on Toyotas
sold in Taiwan would be paid entirely by Taiwanese.
2.If the government imposes a tax on good X paid by the consumer. Explain and
graph the effect of the tax on the equilibrium price and equilibrium quantity
of the following market. (Suppose good X has a regular demand and supply.)
(A) market for good X.
(B) market for the substitute of good X.
(C) market for the complement of good X.
(D) market for the input resource in the production of good X.
(E) market for the good which used good X as the input resource.
3. The demand function for cigarettes is P = 52 - 4Q, and the supply function
is P = 12 + Q.
(A) What is the equilibrium price and equilibrium quantity of cigarettes?
(B) What is the price elasticity of demand for cigarettes at the equilibrium
price? (Take absolute value)
(C) Suppose government decides to cut down the supply of cigarettes. This will
increase the production cost of cigarettes, but has no effect on the demand.
Would the consumers’ expenditure on cigarettes increase or decrease?
(D) Suppose instead of cutting down the supply of cigarettes, the government
puts more effort in educating people about the health risks of smoking.
Would the consumers’ expenditure on cigarettes increase or decrease?
4. Use the graph to answer the following questions about CDs.
http://imgur.com/rlVdA5g
a. What is the equilibrium price and quantity of CDs before regulated price?
b. What is the price of CDs after regulated price?
c. What is the quantity of CDs after regulated price?
d. What is the amount of consumer surplus before regulation?
e. What is the amount of consumer surplus after regulation?
f. What is the amount of producer surplus before regulation?
g. What is the amount of producer surplus after regulation?
h. What is the amount of total surplus before regulation?
i. What is the amount of total surplus after regulation?
j. What is the change in total surplus because of regulation?