Exam 10: Competitive Markets: Applications

In a way, statement I represents the "invisible hand" of the marketplace that Adam Smith was discussing in his 1776 classic treatise sometimes referred to as "The Wealth of Nations."

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(True/False)

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Question 1

Correct Answer:

Verified

True

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices without the usual deadweight loss that would accompany them.

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(True/False)

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Question 2

Correct Answer:

Verified

False

An analysis that determines the equilibrium prices and quantities in one market holding constant prices in all other markets is called:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

When a tax is imposed on the producers of a product, the consumers and producers each bear some part of the burden.

(True/False)

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Question 4

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the dead-weight loss due to the tax?

(Multiple Choice)

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Question 5

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. How much of this $\$ 3$ is paid for by producers?

(Multiple Choice)

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Question 6

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . Suppose the government imposes an excise tax of $\$ 4$ per unit on this market. What is the deadweight loss from this tax?

(Multiple Choice)

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Question 7

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices and deadweight loss.

(True/False)

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Question 8

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in consumer surplus due to the tax?

(Multiple Choice)

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Question 9

Suppose that the market for corn is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 10 - Q ^ { d }$ ; the supply curve can be expressed as $P =$ $0.25 Q ^ { s }$ . Quantity is expressed in millions of bushels. What is the equilibrium quantity traded and price in this market?

(Multiple Choice)

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Question 10

Suppose that the market for corn is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 10 - Q ^ { d }$ ; the supply curve can be expressed as $P =$ $0.25 Q ^ { s }$ . Quantity is expressed in millions of bushels. Now suppose that the federal government imposes a price floor of $\$ 3$ per bushel of corn. What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?

(Multiple Choice)

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Question 11

In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each other's wellbeing do not extend beyond those effects transmitted by prices.

(True/False)

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Question 12

-Based on the graph above, determine the level of producer surplus at the market equilibrium.

(Multiple Choice)

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Question 13

With an acreage limitation program (compared with the initial situation of no program), which of the following statements is true?

(Multiple Choice)

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Question 14

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the increase in consumer surplus resulting from the subsidy?

(Multiple Choice)

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Question 15

In a perfectly competitive market, which of the following will not occur as a result of a subsidy?

(Multiple Choice)

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Question 16

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is consumer surplus in this market?

(Multiple Choice)

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Question 17

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What are the equilibrium price and quantity traded before the subsidy?

(Multiple Choice)

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Question 18

Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 60 - Q ^ { d }$ ; the supply curve can be expressed as $P =$ $0.5 Q ^ { s }$ . Quantity is expressed in millions of boxes per month. Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month. What is the level of excess supply in this market?

(Multiple Choice)

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Question 19

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the equilibrium quantity traded after imposition of the subsidy?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 86

In a way, statement I represents the "invisible hand" of the marketplace that Adam Smith was discussing in his 1776 classic treatise sometimes referred to as "The Wealth of Nations."

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices without the usual deadweight loss that would accompany them.

An analysis that determines the equilibrium prices and quantities in one market holding constant prices in all other markets is called:

When a tax is imposed on the producers of a product, the consumers and producers each bear some part of the burden.

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the dead-weight loss due to the tax?

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. How much of this $\$ 3$ is paid for by producers?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . Suppose the government imposes an excise tax of $\$ 4$ per unit on this market. What is the deadweight loss from this tax?

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices and deadweight loss.

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in consumer surplus due to the tax?

In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each other's wellbeing do not extend beyond those effects transmitted by prices.

-Based on the graph above, determine the level of producer surplus at the market equilibrium.

With an acreage limitation program (compared with the initial situation of no program), which of the following statements is true?

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the increase in consumer surplus resulting from the subsidy?

In a perfectly competitive market, which of the following will not occur as a result of a subsidy?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is consumer surplus in this market?

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What are the equilibrium price and quantity traded before the subsidy?

Consider a perfectly competitive market with inverse market supply $P = 5 + 3 Q ^ { s }$ and inverse market demand $P = 50 - 2 Q ^ { d }$ . Suppose the government subsidizes this market with a subsidy of $\$ 5$ per unit. What is the equilibrium quantity traded after imposition of the subsidy?

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 10: Competitive Markets: Applications

In a way, statement I represents the "invisible hand" of the marketplace that Adam Smith was discussing in his 1776 classic treatise sometimes referred to as "The Wealth of Nations."

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices without the usual deadweight loss that would accompany them.

An analysis that determines the equilibrium prices and quantities in one market holding constant prices in all other markets is called:

When a tax is imposed on the producers of a product, the consumers and producers each bear some part of the burden.

Suppose that a market is initially in equilibrium. The initial demand curve is P=90−QdP = 90 - Q ^ { d }P=90−Qd . The initial supply curve is P=2QsP = 2 Q ^ { s }P=2Qs . Suppose that the government imposes a $3\$ 3$3 tax on this market. What is the dead-weight loss due to the tax?

Suppose that a market is initially in equilibrium. The initial demand curve is P=90−QdP = 90 - Q ^ { d }P=90−Qd . The initial supply curve is P=2QsP = 2 Q ^ { s }P=2Qs . Suppose that the government imposes a $3\$ 3$3 tax on this market. How much of this $3\$ 3$3 is paid for by producers?

Consider a perfectly competitive market with market supply Qs=−2+PQ ^ { s } = - 2 + PQs=−2+P and market demand Qd=30−PQ ^ { d } = 30 - PQd=30−P . Suppose the government imposes an excise tax of $4\$ 4$4 per unit on this market. What is the deadweight loss from this tax?

In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices and deadweight loss.

Suppose that a market is initially in equilibrium. The initial demand curve is P=90−QdP = 90 - Q ^ { d }P=90−Qd . The initial supply curve is P=2QsP = 2 Q ^ { s }P=2Qs . Suppose that the government imposes a $3\$ 3$3 tax on this market. What is the change in consumer surplus due to the tax?

In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each other's wellbeing do not extend beyond those effects transmitted by prices.

-Based on the graph above, determine the level of producer surplus at the market equilibrium.

With an acreage limitation program (compared with the initial situation of no program), which of the following statements is true?

In a perfectly competitive market, which of the following will not occur as a result of a subsidy?

Consider a perfectly competitive market with market supply Qs=−2+PQ ^ { s } = - 2 + PQs=−2+P and market demand Qd=30−PQ ^ { d } = 30 - PQd=30−P . What is consumer surplus in this market?

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the dead-weight loss due to the tax?

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. How much of this $\$ 3$ is paid for by producers?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . Suppose the government imposes an excise tax of $\$ 4$ per unit on this market. What is the deadweight loss from this tax?

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the change in consumer surplus due to the tax?

Consider a perfectly competitive market with market supply $Q ^ { s } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . What is consumer surplus in this market?