Question 1

-In Figure 5-6 the deadweight loss is ____for the price ceiling and _____ for the price floor.

Accepted Answer

A) C+E for both 
B) D+E for the price ceiling and B+C for the price floor 
C) F for the price ceiling and A for the price floor 
D) C for the price ceiling and C+E for the price floor 
A) C+E for both 
B) D+E for the price ceiling and B+C for the price floor 
C) F for the price ceiling and A for the price floor 
D) C for the price ceiling and C+E for the price floor A

Question 2

-In figure 5-15 what is the CHANGE in the producer surplus due to the tax?

Accepted Answer

A) E+F+G 
B) E+F 
C) B+C 
D) B+E+H 
A) E+F+G 
B) E+F 
C) B+C 
D) B+E+H A

Question 3

Using the same figure, what is the net benefit with the subsidy?

Accepted Answer

A) B+C+D+E+H-I 
B) A+B+C+F-I 
C) H+D+E-I 
D) A+B+C+D+E-I 
A) B+C+D+E+H-I 
B) A+B+C+F-I 
C) H+D+E-I 
D) A+B+C+D+E-I B

Question 4

Rent-seeking occurs when

Accepted Answer

A) the government regulators for an industry are taken over by the businesses they are meant to regulate 
B) the owner of land collects rent from her tenants 
C) an organization seeks to get benefits from the government using lobbying 
D) a person seeks the lowest cost apartment he can afford 
A) the government regulators for an industry are taken over by the businesses they are meant to regulate 
B) the owner of land collects rent from her tenants 
C) an organization seeks to get benefits from the government using lobbying 
D) a person seeks the lowest cost apartment he can afford

Question 5

What is the optimum tax rate?

Accepted Answer

A) 64-46 = 18 
B) 64-55 = 9 
C) 55-45 = 10 
D) 77.5-55 = 22.5 
A) 64-46 = 18 
B) 64-55 = 9 
C) 55-45 = 10 
D) 77.5-55 = 22.5

Question 6

The school of thought that believes self-interested voters, politicians and interest groups limit government's ability to produce effective policy is known as

Accepted Answer

A) Chicago School 
B) Virginia School 
C) Austrian School 
D) Keynesian School 
A) Chicago School 
B) Virginia School 
C) Austrian School 
D) Keynesian School

Question 7

-In Figure 5-15 what is the government surplus with the tax in place?

Accepted Answer

A) A+B+C+D 
B) B+C+D+E+F+G 
C) B+C+E+F 
D) E+F+G+H+I 
A) A+B+C+D 
B) B+C+D+E+F+G 
C) B+C+E+F 
D) E+F+G+H+I

Question 8

-What is the Government Surplus with the Subsidy in place?

Accepted Answer

A) negative A+B+C+D+E 
B) negative A+H+I 
C) negative B+C+D+E+H+I 
D) negative B+C+D+E 
E) none of the above, the government surplus is positive 
A) negative A+B+C+D+E 
B) negative A+H+I 
C) negative B+C+D+E+H+I 
D) negative B+C+D+E 
E) none of the above, the government surplus is positive

Question 9

Suppose that the production of a good produces a negative externality resulting in higher marginal social costs (MSC) than marginal private costs (MPC).Suppose MPC=10+Q and MSC=10+1.5Q and Demand is P=100-Q.
-What is the social equilibrium quantity and price?

Accepted Answer

A) Q = 45, P = 55 
B) Q = 36, P = 64 
C) Q = 55, P = 65 
D) Q = 35, P = 45 
A) Q = 45, P = 55 
B) Q = 36, P = 64 
C) Q = 55, P = 65 
D) Q = 35, P = 45

Question 10

What is the government surplus with the optimal tax in place?

Accepted Answer

A) Zero 
B) $324 
C) $648 
D) $1,012.5 
A) Zero 
B) $324 
C) $648 
D) $1,012.5

-In Figure 5-6 the deadweight loss is for the price ceiling and _ for the price floor.

-In figure 5-15 what is the CHANGE in the producer surplus due to the tax?

Using the same figure, what is the net benefit with the subsidy?

Rent-seeking occurs when

What is the optimum tax rate?

The school of thought that believes self-interested voters, politicians and interest groups limit government's ability to produce effective policy is known as

-In Figure 5-15 what is the government surplus with the tax in place?

-What is the Government Surplus with the Subsidy in place?

Suppose that the production of a good produces a negative externality resulting in higher marginal social costs (MSC) than marginal private costs (MPC).Suppose MPC=10+Q and MSC=10+1.5Q and Demand is P=100-Q. -What is the social equilibrium quantity and price?

What is the government surplus with the optimal tax in place?

The Meaning of Policy Analysis

A Review of Markets and Rational Behavior

Ethics for Policy Analysts

Efficiency and Imperfect Markets

Benefit-Cost Analysis

Net Benefits Over Time and Present Value

Choosing a Discount Rate

Risk and Uncertainty

Life, Health, and Health Care

Economic Impact Analysis

Urban Transportation

Pollution Control Policy

Poverty and Income Support Policies

Policies for the Working Poor: Training, Worker Subsidies and the Minimum Wage

Filters

Exam 5: Efficiency and the Role of Government

-In Figure 5-6 the deadweight loss is ____for the price ceiling and _____ for the price floor.

-In figure 5-15 what is the CHANGE in the producer surplus due to the tax?

Using the same figure, what is the net benefit with the subsidy?

Rent-seeking occurs when

What is the optimum tax rate?

The school of thought that believes self-interested voters, politicians and interest groups limit government's ability to produce effective policy is known as

-In Figure 5-15 what is the government surplus with the tax in place?

-What is the Government Surplus with the Subsidy in place?

Suppose that the production of a good produces a negative externality resulting in higher marginal social costs (MSC) than marginal private costs (MPC).Suppose MPC=10+Q and MSC=10+1.5Q and Demand is P=100-Q. -What is the social equilibrium quantity and price?

What is the government surplus with the optimal tax in place?

The Meaning of Policy Analysis

A Review of Markets and Rational Behavior

Ethics for Policy Analysts

Efficiency and Imperfect Markets

Benefit-Cost Analysis

Net Benefits Over Time and Present Value

Choosing a Discount Rate

Risk and Uncertainty

Life, Health, and Health Care

Economic Impact Analysis

Urban Transportation

Pollution Control Policy

Poverty and Income Support Policies

Policies for the Working Poor: Training, Worker Subsidies and the Minimum Wage

Filters

-In Figure 5-6 the deadweight loss is for the price ceiling and _ for the price floor.