1|Page
BSNS 112 MIDTERM EXAM LATEST 2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What is the difference between a tariff and a quota? - ANSWER-
Instead of revenue going to the government (what happened with
the tariff) the revenue goes to the import licence holders who
import at the world price and sell at the higher domestic price
Although free-trade causes overall welfare increases, what makes
it controversial? - ANSWER-The short-run effects such as
unemployment.
If Pizza is a normal good which of the following could be the value
of the income elasticity of demand for pizza?
a) 0.2
b) 0.8
c) 1.5
d) All of the above - ANSWER-d, all of the above. So long as
PEOD is positive it is a normal good.
,2|Page
When is a market said to have failed? - ANSWER-When Marginal
Value (MV) does not equal Marginal Cost (MC); this occurs
usually where supply meets demand.
What are 5 examples of market failure? - ANSWER-1) Imperfect
competition (e.g. monopoly, duopoly, oligopoly, monopolistic
competition)
2) Imperfect information
3) Public goods
4) Common resources
5) All externalities
How is Deadweight loss caused from gift giving? - ANSWER-If the
giver of the gift pays more for the gift than the receiver would
have paid for it.
What is a public good? - ANSWER-It is non-rival and non-
excludable.
,3|Page
What is a non-rival good? - ANSWER-a good whose consumption
by one person does not diminish its availability to others.
What are some examples of non-rival goods? - ANSWER-- TV
broadcasts/signal
- Radio signal
- (uncongested park/road) -> when they become congested they
are rival
- Street Lights
- Fireworks display
- Scientific knowledge
What is a non-excludable good? - ANSWER-a good that is
difficult, or costly to exclude to non-payers from consuming
What are some examples of non-excludable goods? - ANSWER--
Street lighting
- Fireworks display potentially
- Scientific knowledge
, 4|Page
What are some examples of public goods? - ANSWER-- Street
lighting
- Fireworks display
- Scientific knowledge
- National defence/police force (presence of deterrence)
Why wont the market provide public goods? - ANSWER-If you
can't stop people from consuming a good who won't pay, then
why would you provide it (non-excludability)
What are Common Resources? - ANSWER-Goods that are rival
but non-excludable.
What are some examples of Common Resources? - ANSWER--
Commonly owned fisheries
- Commonly owned grazing lands (e.g. Wimbledon Common)
- Congested roads (unless they are toll rates)
BSNS 112 MIDTERM EXAM LATEST 2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What is the difference between a tariff and a quota? - ANSWER-
Instead of revenue going to the government (what happened with
the tariff) the revenue goes to the import licence holders who
import at the world price and sell at the higher domestic price
Although free-trade causes overall welfare increases, what makes
it controversial? - ANSWER-The short-run effects such as
unemployment.
If Pizza is a normal good which of the following could be the value
of the income elasticity of demand for pizza?
a) 0.2
b) 0.8
c) 1.5
d) All of the above - ANSWER-d, all of the above. So long as
PEOD is positive it is a normal good.
,2|Page
When is a market said to have failed? - ANSWER-When Marginal
Value (MV) does not equal Marginal Cost (MC); this occurs
usually where supply meets demand.
What are 5 examples of market failure? - ANSWER-1) Imperfect
competition (e.g. monopoly, duopoly, oligopoly, monopolistic
competition)
2) Imperfect information
3) Public goods
4) Common resources
5) All externalities
How is Deadweight loss caused from gift giving? - ANSWER-If the
giver of the gift pays more for the gift than the receiver would
have paid for it.
What is a public good? - ANSWER-It is non-rival and non-
excludable.
,3|Page
What is a non-rival good? - ANSWER-a good whose consumption
by one person does not diminish its availability to others.
What are some examples of non-rival goods? - ANSWER-- TV
broadcasts/signal
- Radio signal
- (uncongested park/road) -> when they become congested they
are rival
- Street Lights
- Fireworks display
- Scientific knowledge
What is a non-excludable good? - ANSWER-a good that is
difficult, or costly to exclude to non-payers from consuming
What are some examples of non-excludable goods? - ANSWER--
Street lighting
- Fireworks display potentially
- Scientific knowledge
, 4|Page
What are some examples of public goods? - ANSWER-- Street
lighting
- Fireworks display
- Scientific knowledge
- National defence/police force (presence of deterrence)
Why wont the market provide public goods? - ANSWER-If you
can't stop people from consuming a good who won't pay, then
why would you provide it (non-excludability)
What are Common Resources? - ANSWER-Goods that are rival
but non-excludable.
What are some examples of Common Resources? - ANSWER--
Commonly owned fisheries
- Commonly owned grazing lands (e.g. Wimbledon Common)
- Congested roads (unless they are toll rates)
