ECONOMICS TEST - ECONOMIC MAJORS ONLY! I WILL NEED HANDSHAKE NOR REPLY IF YOUR NOT AN ECONOMICS MAJOR!

Test 3 MicroEconomics Spring 2017-05-09

1. Under perfect competition

   1. Explain dead weight loss, elasticity and Consumer and Producer Surplus.
      
      

2. Assuming perfectly competitive market, at the price indicated by the broken line, what will happen? Why?
   
   
   

3. The supply of labor is perfectly inelastic if…

   1. Complete the above sentence

   2. Explain
      
      

4. A monopolists chooses to sell at a high price at a quantity that corresponds to the …

   1. Elastic/inelastic? Side of the demand curve.

   2. Where elasticity equals 1

   3. It does not matter

   4. Explain why.

1. Extra Credit (watch this video: https://www.youtube.com/watch?v=XCcG-qablyY)

   1. … and use the Tools of economics to answer the following question:

      1. What will the world be if robots took our jobs?