서강대 경제학원론1(영강) 중간고사 역대 기출족보.pdf

Review Questions (Part 2, Set 1), Principles of Economics I
Multiple Choice Identify the choice that best completes the statement or answers the question. Table 1 Quantity 1 2 3 4 5 6 Private Value $40 $38 $36 $34 $32 $28 Private Cost $20 $23 $26 $29 $32 $35 External Cost $7 $7 $7 $7 $7 $7

1. Refer to Table 1. The last unit of output for which private value exceeds social cost is the a. 2nd unit. b. 3rd unit. c. 4th unit. d. 5th unit. 2. Refer to Table 1. The market equilibrium quantity of output is a. 3 units. b. 4 units. c. 5 units. d. 6 units. 3. Refer to Table 1. Which of the following policies would move the market from the market equilibrium to the socially optimal equilibrium a. a tax of $2 per unit of output b. a subsidy of $2 per unit of output c. a tax of $7 per unit of output d. a subsidy of $7 per unit of output 4. Once tradable pollution permits have been allocated to firms, a. the government controls the price of permits. b. firms that can reduce pollution only at hi…