EDEM Microeconomics Past Paper 2022/23 PDF

MICROECONOMICS 2022/23 IA PAST QUESTIONS 1. EDEM is on Tonaton, bidding for a first edition of the influential Frank Miller graphic novel Batman: The Dark Knight Returns. In this market, who is EDEM competing with? a. The seller of the graphic novel b. The other bidd...

MICROECONOMICS 2022/23 IA PAST QUESTIONS 1. EDEM is on Tonaton, bidding for a first edition of the influential Frank Miller graphic novel Batman: The Dark Knight Returns. In this market, who is EDEM competing with? a. The seller of the graphic novel b. The other bidders c. eBay's stakeholders. d. None of the above 2. When floods wiped out the banana crop in Central America, the equilibrium price of bananas and the equilibrium quantity of bananas a. rose; increased b.rose;decreasd c.fell;increased d.fell; decreased 3. What should happen to the "demand for speed" (measured by the average speed on highways) once airbags are included on cars a The demand for speed increases b. The demand for speed decreases c. The demand for speed stays the same d. None of the aboves 4 Eli famously, mass-produced cars at the beginning of the twentieth century, starting -Eli Car Company. He made millions because mass production made it cheap to produce cars, and he passed some of the savings to the consumer in the form of a low price. Cars became a common sight in Ghana thereafter. Keeping total revenue and its relationship with price in mind, do you expect the demand for cars to be a. Elastic b. Inelastic c. Unit Elastic d. unconnected with elasticity 5 One-way governments have tried to collect taxes from the wealthy is through the use of luxury taxes, which are exactly what they sound like: taxes on goods that are considered luxuries, like jewelry or expensive cars and real estate. What is true about the demand for luxury a. It is elastic b. It is inelastic c. It is unit elastic d. unconnected with elasticity 6. Business leaders often say that there is a "shortage" of skilled workers, and so they argue that immigrants need to be brought in to do these jobs. For example, an AP article entitled «New York farmers fear a shortage of skilled workers," pointing out that a special U.S. visa program, the H-2A program,"allows employers to hire foreign workers temporarily if they show that they were not able to find U.S. workers for the jobs." (Source: Thompson, Carolyn. May 13, 2008. N.Y. farmers fear a shortage of skilled workers Associated Press.) How do unregulated markets cure a "labor shortage" when there are no immigrants to boost the labor supply? a. Let the price of labor increase. b. Let the price of labor decrease c. Contract production. d. Expand production 7 Which of the following goods is more likely to be inelastically demanded? a. Demand for tangerines. b. Demand for fruit c. None of the Above d. Both a and b 8 During the Middle Ages; the African city of Taghaza quarried salt in 200-pound blocks. to be sent o the salt market in Timbuktu, in present-day Mali. Travelers report that Taghazans used salt instead of wood to construct buildings. Compared with other towns without big salt mines, -demand for wood in Taghaza is. a. More elastic (b.) More inelastic c. Unit elastic d. None of the above 9. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? a. The quantity demanded increases by 2% b. The quantity demanded decreases by 20% c. The quantity demanded decreases by 2% d. The quantity demanded increases by 20%  11. In Ghana, the long-run elasticity of oil demand has been estimated at -0.5. Some policymakers and environmental scientists would like to see Ghana cut back on its use of oil in the long run We can use this elasticity estimate to get a rough measure of how high the price of oil would have to permanently rise in order to get people to make big cuts in oil consumption. How much would the price of oil have to permanently rise in order to cut oil consumption by 50%? a. 5% b. 25% c. 50% d. 100% 12 Which of the following goods is more likely to be inelastically demanded? a. Demand for tangerines. b. Demand for fruit c. None of the Above d. Both a and b 13 During the Middle Ages; the African city of Taghaza quarried salt in 200-pound blocks. to be sent o the salt market in Timbuktu, in present-day Mali. Travelers report that Taghazans used salt instead of wood to construct buildings. Compared with other towns without big salt mines, - demand for wood in Taghaza is. a. More elastic (b.) More inelastic c. Unit elastic d. None of the above  15 In and around Legon, real estate developers are building thousands of new student- friendly apartments close to campus. If you want to pay the lowest rent possible, you should hope that demand for apartments is: a Elastic b. Inelastic c. unitary elastic d. None of the above 16. In Ghana, the long-run elasticity of oil demand has been estimated at -0.5. Some policymakers and environmental scientists would like to see Ghana cut back on its use of oil in the long run We can use this elasticity estimate to get a rough measure of how high the price of oil would have to permanently rise in order to get people to make big cuts in oil consumption. How much would the price of oil have to permanently rise in order to cut oil consumption by 50%? a. 5% ( b. 25% c. 50% e. 100% 18 When the price of olive oil goes up, what probably happens to the demand for corn oil? a. The demand for corn oil increases b. The demand for com oil decreases c. A change in the price of olive oil has no effect on the demand for corn oil d. The quantity demanded for corn oil increases 19 A 2 percent increase in income increases the quantity demanded of a good by 1 percent. The income elasticity of demand for this good is---------- the good is a good a 2; normal b-2; inferior. c1/2; normal d. 2; inferior 20 When is a pharmaceutical business more likely to hire highly educated, cutting-edge workers and use new, experimental research methods? a. When the business expects the price of its new drug to be low b.) When the business expects the price of its new drug to be high c. The pharmaceutical business is unlikely to hire highly educated workers under any price. d. When the business expects the price not to change 20. If oil executives read in the newspaper that massive new oil supplies have been discovered under the Pacific Ocean but will likely only be useful in 10 years, what is likely to happen to the supply of oil today? a.) The supply of oil will rise today. b. The supply of oil will fall today. c. There will be no change in the supply of oil. d. The quantity of oil that will be supplied today will fall. 21. In the town of Accia, the government declares that all street parking must be free: There can be no parking meters. In an almost identical town of Ada, parking costs $5 per hour (or $1.25 per 15 minutes). Where will it be easier to find parking? a. Accra b) Ada c. Both Accra and Ada 17. If a government decides to make health insurance affordable by requiring all health insurance companies to cut their prices by 30%, what will probably happen to the number of people covered by health insurance? a. More people will be covered because it's cheaper and more people can now afford it. (b) Fewer people will be covered because health insurance companies will supply less. c. The number of insured will not change d. Indeterminate with the given information. 18. If the government forced all bread manufacturers to sell their products at a "fair price" that was half the current, free-market price, what would happen to the quantity supplied of bread? a. quantity supplied decreases. b. quantity supplied increases. c. Indeterminate with the given information. d. quantity supplied will stay same 19. Perfect substitutes a. always have indifference curves with slopes of -1. b. always have indifference curves with slopes of 1. C. have fixed rates of trading off one good for another. d. have horizontal indifference curves. 26 In a rent-controlled apartment, a landlord will likely do which of the following more often: a. Rent more apartment b. provide more unfurnished apartments c. Discriminate more against applicants d. Allow more renters per room 27 Which of the following is NOT a consequence of rent controls? (a.) A shortage of rental housing. b. Low-cost rentals will incentivized migration, leading to overcrowding. c. Already existing apartment building will be crumbling from lack of maintenance. d. All of the above are consequences of rent controls. For this questions, assume Good X is measured on the X-axis and Good Y is measured on the y axis. 28 A price ratio of 3 means that a consumer is able to trade 1 unit of --------------for 3 unite a. Good x, good y b) Good y, good x 29. Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic As a result, a 7 percent increase in the price charged by the owner of this stand leads to a. zero peaches sold by this stand. b. no change in the quantity demanded at this stand c. a 7 percent decrease in the quantity demanded at this stand. d. a 7 percent decrease in demand at this stand. 30. Suppose the price of a DVD rose from $15 to $17 and the quantity demanded decreased from 1,000 per month to 900 per month. Using the midpoint formula, the percent change in price lead to a percent change in the quantity demanded. A) 13.3; 10.0 B) 8.0; 9.5 C) 12.5; 10.5 D) 11.8; 11.1 E) None of the above answers is correct. 31 In and around Legon, real estate developers are building thousands of new student- friendly apartments close to campus. If you want to pay the lowest rent possible, you should hope that demand for apartments is: a Elastic b. Inelastic c. unitary elastic d. None of the above 32. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? a. The quantity demanded increases by 2% b. The quantity demanded decreases by 20% (c.) The quantity demanded decreases by 2% d. The quantity demanded increases by 20% 33.With this price control on bread in the question 18, would you expect bread quality to rise or fall? c. Quality rises b) Quality falls a. Indeterminate with the given information. b. There will be no change in quality