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Econ200 Review Questions

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Fall, 2012 Prof. Peter Coughlin TA: Yiqun Chen Econ200: Review Questions Note: this set of questions is used for the final review session. It is NOT an exhaustive representation of the topics covered in the final exam. For a complete list of topics covered in the exam, please refer to the course website. 1. Once a cartel is formed, the market is in effect served by a. a monopoly. b. an oligopoly. c. imperfect competition. d. monopolistic competition. 2. A situation in which firms choose their best strategy given the strategies chosen by the other firms in the market is called a. a competitive equilibrium. b. an open-market solution. c. a socially-optimal solution. d. a Nash equilibrium. Table 17-11 Two …show more content…

d. higher than all European countries. 14. A tax levied on the total amount spent in retail stores is called a. a sales tax. b. an excise tax. c. a retail tax. d. an income tax. 15. Use Table A to complete Table B. TABLE A On Taxable Income Up to $27,050 From $27,051 to $65,550 From $65,551 to $136,750 From $136,751 to $297,350 Over $297,350 TABLE B Taxpayer John Todd Income $52,700 $132,500 Taxpayer John Todd Income $52,700 $132,500 The Tax Rate Is 15.0% 27.5% 30.5% 35.5% 39.1% Tax Amount Average Tax Rate Marginal Tax Rate ANS: Tax Amount $11,111.25 $35,064.75 16. Both public goods and common resources are a. rival in consumption. b. nonrival in consumption. c. excludable. d. nonexcludable. Average Tax Rate 21% 26% Marginal Tax Rate 27.5% 30.5% 17. Without government intervention, public goods tend to be a. overproduced and common resources tend to be overconsumed. b. overproduced and common resources tend to be underconsumed. c. underproduced and common resources tend to be overconsumed. d. underproduced and common resources tend to be underconsumed. Table 11-1 Consider the town of Tritown with only three residents, Ed, Jim, and Tony. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident’s willingness to pay for each acre of the park. Acres 1 2 3 4 5 6 7 Ed $12 8 4 2 0 0 0 Jim

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