Tiêu đề EC1002 - Introduction to Economics - 2019 Exam - Zone-B.pdf ✅

Page 1 of 7 UL19/0090 THIS PAPER IS NOT TO BE REMOVED FROM THE EXAMINATION HALL EC1002 ZB BSc DEGREES AND GRADUATE DIPLOMAS IN ECONOMICS, MANAGEMENT, FINANCE AND THE SOCIAL SCIENCES, THE DIPLOMA IN ECONOMICS AND SOCIAL SCIENCES AND THE CERTIFICATE IN HIGHER EDUCATION IN SOCIAL SCIENCES EXAMINATION Introduction to Economics Thursday 2 May 2019: 14:30 – 17:30 Time allowed: 3 hours DO NOT TURN OVER UNTIL TOLD TO BEGIN This paper consists of THREE sections: Section A (40 marks): TEN multiple choice questions, each worth FOUR marks. Candidates must answer ALL questions. No explanation is needed. Section B (30 marks): Candidates must answer ONE of TWO questions on microeconomics. It is essential that candidates explain their answers. Section C (30 marks): Candidates must answer ONE of TWO questions on macroeconomics. It is essential that candidates explain their answers. Graph paper is provided at the end of this question paper. If used, it must be detached and fastened securely inside the answer book. © University of London 2019
Page 2 of 7 UL19/0090 SECTION A: Multiple Choice Questions Please mark the correct answer in the special multiple choice answer sheet provided using an HB pencil. Candidates should write their candidate number in the boxes and then mark up their appropriate letter and numbers in the grid. The date, candidate first name(s) and surnames should be written in the appropriate space. Candidates should use an eraser to remove any unwanted marks as fully as possible. If an eraser is unavailable, please put a cross (X) through the incorrect mark. The sheets should not be folded or creased in any way as this will make them unreadable. Candidates should not write anywhere else on the sheet other than to mark their answers as shown on the sheet; any writing or marks in an inappropriate place could make the sheet unreadable.
Page 3 of 7 UL19/0090 Candidates should answer ALL questions from this section. Choose one answer for each question: no explanation is needed. Note that some questions ask you to choose which statement IS correct and other questions ask you to choose which statement IS NOT correct. 1. Consider a market where the demand is given by Q D = 80 − 4 5 P and supply is given by Q S = 1 5 P. What are the consumer and producer surplus? a) Consumer surplus is 240 and producer surplus is 450. b) Consumer surplus is 160 and producer surplus is 640. c) Consumer surplus is 800 and producer surplus is 1280. d) Consumer surplus is 1600 and producer surplus is 980. 2. Assume that festival tickets and all-inclusive holidays are substitutes. Which of the following statements IS correct? a) If the price of festival tickets goes down the quantity of all-inclusive holidays demanded will decrease. b) If the price of festival tickets goes down the quantity of all-inclusive holidays demanded will not change. c) If the price of festival tickets goes up the quantity of all-inclusive holidays demanded will decrease. d) If the price of festival tickets goes up the quantity of all-inclusive holidays demanded will not change. . 3. Which of the following statements IS NOT correct? a) A tax does not always lead to the inefficient output. b) Monopolies do not always create a deadweight loss. c) If two firms compete in prices (Bertrand competition) they will set a higher price than if they compete in quantities (Cournot competition). d) A monopolist chooses the price based on the elasticity of demand with respect to price (PED).
Page 4 of 7 UL19/0090 4. A winery is located next to a farm. The grapes are cultivated out in the open and benefit from the fertilizer used for the crops cultivated by the farm. The profit function for the winery is π W = 6W − W2 + 4F where W is the bottles of wine the winery produces and F is the animals the farm has. The profit function for the farm is π F = 12F − F 2 . The two firms merge to internalise the externality. What are the outputs they end up producing as one merged firm? a) W=3 and M=6. b) W=6 and M=8. c) W=6 and M=6. d) W=3 and M=8. 5. Choose the correct statement. The labour supply curve IS: a) Always downward sloping. b) Always upward sloping. c) Upward sloping for monopsonies. d) Perfectly elastic. 6. Choose the correct statement. Potential output IS: a) The output demanded by households as consumption and by firms as investment. b) The output obtained when there is no unemployment. c) The output obtained by trading with other countries. d) The output obtained when all inputs are fully employed. 7. The Fisher equation tells us that: a) Nominal interest rates are less volatile than the real ones. b) Real interest rates are always higher than nominal ones. c) Nominal interest rates can be the same as the real ones. d) Inflation is always positive.