Mid Term Past Paper 2022 And Answers

National Chengchi University Department of Economics Principles of Economics: Microeconomics Midterm Part I: (30 Points) Choose the one alternative that best complete the statement or answer the question. _______ 1. In the figure, imposing a tax on the product results in a division in which A) all of the tax is paid by the buyers. B) all of the tax is paid by the sellers. C) the buyers and sellers pay the same amount. D) neither the buyers nor the sellers pay the tax. _______ 2. If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be true? A) The demand curve for broccoli has shifted leftward and the cross elasticity of demand between spinach and broccoli is positive. B) The demand curves for spinach and broccoli have become more cross inelastic. C) The producer surplus of spinach market increases and the cross elasticity of demand between spinach and broccoli is negative. D) The relationship between broccoli and spinach is of a substitute. _______ 3. Which of the following factors is highly expected to cause the demand curve for coffee to shift