Econ1101 Session 1, 2009 Final Exam

Page 1 of 14 THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 1, 2009 , I ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED †2HOURS THIS PAPER IS WORTH 65% OF THE TOTAL SUBJECT MARK This assessment paper comprises of two sections †Part An and Part B Part A comprises of 20 different decision addresses every value onc and one quarter (1. 25) marks. Answer all the inquiries in Part An on the appropriate response sheet gave, utilizing pencil . just: Print your understudy number, name and initials in the space gave and mark he suitable boxes beneath your understudy number, name and initials. For each question, mark tbe proper reaction (a), (b), (c), or (d). There is just one right reaction to each address in Part A. Part B comprises of four (4) paper type questions, every value TWENTY (20) marks. Answer just TWO (2) inquiries from Part B. ANSWER EACH PART B QUESTION IN A SEPARATE EXAMINATION BOOKLET Answers to inquiries in Part B must be written in ink. Penci l might be utilized in answers to Part B for drawing, portraying or graphical work just . †¢ This inquiry paper might be held by the applicant There are 14 pages in this test paper. 1 Page 2 of 14 PART A This area is worth 25 imprints Mark your answer on Answer Sheet gave Question 1 , †¢ A monopo list evaluates that at the current pnce being charged for the item, Marginal Cost is more prominent than Marginal Revenue and the abso lute value versatility of interest is 1. 8. To build benefit the monopolist should: an) Increase cost so cost rises to the most extreme the customer is happy to address ) Decrease cost and sell more c) Set cost equivalent to the base normal cost d) Increase cost and sell less Question 2 The Coase hypothesis recommends that private markets will be unable to tackle the issue of externalities, an) Unless the legislature gets engaged with the procedure b) When the quantity of gatherings is huge and the haggling costs are high c) If the firm in the mark et is a restraining infrastructure d) If a few people profit by the externality †¢ TURN OVER THE PAGE 2 Page 3 of 14Question 3 Consider the accompanying chart where a legitimately upheld maximum cost works Price ~_ _ __ _ _â€, J __ _ G-†††sâ · c , B~ ___H L_ , ___ L ___ I 01 , :F : , : ::J ‘ †I , : O †bâ€b3 â€d - 1 2 a) FEC. b) DAC. c) GJECF. Amount The most extreme dead weight reduction because of the value roof is spoken to by the regions: d) JAE + DGF. Question 4 Perfect rivalry is proficient and restraining infrastructure isn't, on the grounds that in immaculate rivalry _ , while in imposing business model _ __ a) P b) P c) ~ MC; P>MC MC; P Econ1101 Session 1, 2009 Final Exam Page 1 of 14 THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 1, 2009 , I ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED †2HOURS THIS PAPER IS WORTH 65% OF THE TOTAL SUBJECT MARK This assessment paper comprises of two sections †Part An and Part B Part A comprises of 20 various decision addresses every value onc and one quarter (1. 25) marks. Answer all the inquiries in Part An on the appropriate response sheet gave, utilizing pencil . just: Print your understudy number, name and initials in the space gave and mark he proper boxes underneath your understudy number, name and initials. For each question, mark tbe proper reaction (a), (b), (c), or (d). There is just one right reaction to each address in Part A. Part B comprises of four (4) paper type questions, every value TWENTY (20) marks. Answer just TWO (2) inquiries from Part B. ANSWER EACH PART B QUESTION IN A SEPARATE EXAMINATION BOOKLET Answers to inquiries in Part B must be written in ink. Pencil might be utilized in answers to Part B for drawing, portraying or graphical work just . †¢ This inquiry paper might be held by the applicant There are 14 pages in this test paper. 1 Page 2 of 14 PART A This area is worth 25 imprints Mark your answer on Answer Sheet gave Question 1 , †¢ A monopo list gauges that at the current pnce being charged for the item, Marginal Cost is more prominent than Marginal Revenue and the abso lute value versatility of interest is 1. 8. To build benefit the monopolist should: an) Increase cost so cost approaches the most extreme the buyer is eager to address ) Decrease cost and sell more c) Set cost equivalent to the base normal cost d) Increase cost and sell less Question 2 The Coase hypothesis proposes that private markets will be unable to take care of the issue of externalities, an) Unless the legislature gets associated with the procedure b) When the quantity of gatherings is huge and the bartering costs are high c) If the firm in the m arket is an imposing business model d) If a few people profit by the externality †¢ TURN OVER THE PAGE 2 Page 3 of 14Question 3 Consider the accompanying diagram where a legitimately authorized maximum cost works Price ~_ _ __ _ _â€, J __ _ G-†††sâ · c , B~ ___H L_ , ___ L ___ I 01 , :F : , : ::J ‘ †I , : O †bâ€b3 â€d - 1 2 a) FEC. b) DAC. c) GJECF. Amount The most extreme dead weight reduction because of the value roof is spoken to by the regions: d) JAE + DGF. Question 4 Perfect rivalry is proficient and imposing business model isn't, on the grounds that in flawless rivalry _ , while in restraining infrastructure _ __ a) P b) P c) ~ MC; P>MC MC; P