Question 1

When consumers are loyal to a particular product and the product's price increases, the producer's total revenue

Accepted Answer

A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  The answer cannot be determined based on the information provided. 
A)  increases. 
B)  decreases. 
C)  stays the same. 
D)  The answer cannot be determined based on the information provided.

Question 2

In the United States, the federal payroll tax is a flat tax.

Accepted Answer

A) True 
 B)False

Question 3

Goods that have positive income elasticity less than 1 are _____ goods.

Accepted Answer

A)  luxury 
B)  normal 
C)  inferior 
D)  abnormal 
A)  luxury 
B)  normal 
C)  inferior 
D)  abnormal

Question 4

An inferior good is a good that

Accepted Answer

A)  is demanded by the average customer. 
B)  is reliable. 
C)  lasts a good length of time. 
D)  has an income elasticity that is negative. 
A)  is demanded by the average customer. 
B)  is reliable. 
C)  lasts a good length of time. 
D)  has an income elasticity that is negative.

Question 5

The MAIN determinant of price elasticity of supply is

Accepted Answer

A)  time. 
B)  price. 
C)  quantity demanded. 
D)  quantity supplied. 
A)  time. 
B)  price. 
C)  quantity demanded. 
D)  quantity supplied.

Question 6

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of _____ with a corresponding deadweight loss of _____.

Accepted Answer

A)  $6; $3 
B)  $3; $150 
C)  $6; 50 units 
D)  $3; $75 
A)  $6; $3 
B)  $3; $150 
C)  $6; 50 units 
D)  $3; $75

Question 7

If demand is elastic, a(n)

Accepted Answer

A)  increase in price increases the total revenue. 
B)  decrease in price decreases the total revenue. 
C)  increase in price leaves the total revenue unchanged. 
D)  decrease in price increases the total revenue. 
A)  increase in price increases the total revenue. 
B)  decrease in price decreases the total revenue. 
C)  increase in price leaves the total revenue unchanged. 
D)  decrease in price increases the total revenue.

When consumers are loyal to a particular product and the product's price increases, the producer's total revenue

In the United States, the federal payroll tax is a flat tax.

Goods that have positive income elasticity less than 1 are _____ goods.

An inferior good is a good that

The MAIN determinant of price elasticity of supply is

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of _ with a corresponding deadweight loss of _.

If demand is elastic, a(n)

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

The Labor Market

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

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Exam 5: Elasticity

When consumers are loyal to a particular product and the product's price increases, the producer's total revenue

In the United States, the federal payroll tax is a flat tax.

Goods that have positive income elasticity less than 1 are _____ goods.

An inferior good is a good that

The MAIN determinant of price elasticity of supply is

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of _____ with a corresponding deadweight loss of _____.

If demand is elastic, a(n)

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Consumer Choice and Demand

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

The Labor Market

Land, Capital Markets, and Innovation

Externalities and Public Goods

Network Goods

Poverty and Income Distribution

International Trade

Filters

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of _ with a corresponding deadweight loss of _.