Take home exam (optional extra credit), due on Monday, April 2nd at the beginning of the class
Econ 2106: Microeconomics, spring 2007, Reza Kheirandish
Name___________________________________
ID# ___________________________________
Please answer all of the following questions (1-20). These multiple choice questions are equally
valued (0.5 point each, 10 points total). Take home exam is due on Monday, April 2nd at the
beginning of the class. Late submissions for any reason will not be accepted. I will collect the
scantrons, so please do not forget to write down your name, and ID on them. Good luck.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 1. If quantity demanded is completely unresponsive to changes in price, demand is
a. inelastic.
b. unit elastic.
c. elastic.
d. perfectly elastic.
e. perfectly inelastic.
____ 2. If Cassandra bought 16 blouses last year when her income was $40,000 and she buys 24 blouses this year her
when income is $35,000, then blouses are
a. an inferior good.
b. a normal good.
c. a substitute good.
d. a complementary good.
e. There is not enough information to answer this question.
Exhibit 5-2
____ 3. Refer to Exhibit 5-2. The market for good X is initially in equilibrium at $5. The government then places a
per-unit tax on good X as shown by the shift of S1 to S2. What is an expression for the tax revenue raised?
a. $2.25 x Q2
b. $1.25 x Q2
c. $1.00 x Q2
d. ($1.00 x Q2) + ($1.25 x [Q1 - Q2])
e. $2.25 x (Q1 - Q2)
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