1.

A product will be considered highly Elastic in Demand if it has the following characteristics,EXCEPT:

Question options:

	If there are many alternatives or substitutes for this product.
	It is defined within a short term time frame.
	It has a low adjustment cost in consumption.
	If the good represents a large proportion of consumer's budget.

3.

The following are correct description for the special cases of a Linear Demand,EXCEPT:

Question options:

	A linear demand has price elasticities that range from zero to plus infinity.
	In the Linear Demand, the upper portion of the demand is Elastic.
	The Linear Demand has Elasticity equal to One at the point where the Marginal Revenue equals One.
	For a Linear Demand, revenue is maximized when Price Elasticity equals One.

4.

The following are key characteristics of Indifference Curves,EXCEPT:

Question options:

	Any point on an indifference curve generates the same level of consumer's utility.
	Indifference Curves cannot cross between each other.
	Indifference Curves between two goods are Concave to the Origin.
	An indifference Curve between two close substitutes are wide-open.

6.

The following are true statements about a Supply Curve that is Highly Inelastic, EXCEPT:

Question options:

	It refers to the case where Supply has High Total Cost of Production per unit.
	It reflects typically a case of High Adjustment Cost in Production.
	The Supply Curve is Highly Vertical.
	As Demand Curve increases, price in equilibrium increases in a higher proportion than the quantity in equilibrium.

13.

The following are true statement regarding the optimal Tax strategies from the Government's perspective,EXCEPT:

Question options:

	The government can generate total higher tax revenue on markets that are relatively more inelastic in demand, like gasoline and cigarettes.
	The government should impose a tax per unit that is not too large or too small, in order to maximize total tax revenue.
	For any market, is easy for the government to impose taxes on producers, because producers can easily pass that to the consumers.
	Higher tax per unit will always generate higher DWL.

16.

The following factors could lead to a shift up of the Supply Curve for Labor, and consequent increase in market wage,EXCEPT:

Question options:

	Increase in regulated federal minimum wage.
	Increase in the value of College Education.
	Increase in the amount of Unemployment Benefits per worker.
	An increase in the proportion of elder population ready for retirement.

24.

The following are possible characteristics related to different market structures,EXCEPT:

Question options:

	Monopoly always implies the existence of positive economic profits
	The key characteristic for Monopolistic Competition is product differentiation.
	Under Perfect Competition firms will compete only in price since the product is standard.
	Collusion is a profitable but unstable strategy under oligopoly.

25.

Assuming perfect competition, identify the Price and Quantity in Equilibrium, given the following info on Supply and Demand:

Qd = 80 - 4Px

Qs = 20 + 6Px

Question options:

	P* = 10 Q* = 80
	P* =6 Q* = 56
	P* = 6 Q* = 44
	P * = 10 Q* = 40