Exam simulation 2 20182019

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1 ENERGY ECONOMICS: EXAM SIMULATION Academic Year: 2018/2019 Professors: Bianchini, Butticè RULES Duration: 1.5 hours During the test students are not allowed to use class notes or textbooks or to leave the classroom Mark the exam folder with your Name, Last Name and Id Number (or Matricola). NAME LAST NAME ID NUMBER Instructions • Read the questions carefully and provide answers to all the points raised in each question. Remember to define all variables and parameters used in your answers • No electronic devices are allowed in class • Copying from other candidates or any other sources is prohibited • At the end of the test hand over only the exam folder • Exam written with pencils are invalidated • This exam contains 7 pages Non-compliance with these rules will lead to exam invalidation 2 Question 1 - Multiple Choice Questions (10 points) Consumer surplus is (1 point): 1. Is the highest price that a given consumer will accept and still purchase the good 2. Is the difference between the highest price that a given consumer will accept and still purchase the good and the market price 3. Is the difference between the highest price that a given consumer will accept and still purchase the good and the minimum price a supplier will accept to sell the good 4. Is equal to the difference between the reservation price and price in a pure competitive market Compared to a monopoly, in a pure competitive market (1 point): 1. Firms decide to set a lower price 2. The quantity produced is always lower 3. Firms produce a quantity to satisfy completely the demand 4. None of the above The consumption of a pure public good by a customer (2 points): 1. Does not affect the availability of the good for other potential consumers 2. Implies that other consumers cannot purchase the good 3.…