Exam 4: Economic Efficiency,government Price Setting,and Taxes

Figure 4-4 -Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8,000 pounds of pecans are sold

Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 4-8.The price buyers pay after the tax is

In the economic sense,almost everything is scarce.________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price.

Figure 4-4 -Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If the price of pecans is $3,what changes in the market would result in an economically efficient output?

The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called

A tax that imposes a small excess burden relative to the tax revenue that it raises is

Which of the following is not a result of government price controls?

The division of the burden of a tax between buyers and sellers in a market is called tax allocation.

Refer to Figure 4-3.What is the value of producer surplus at a price of $18??

Figure 4-9 -Refer to Figure 4-9.Suppose the market is initially in equilibrium at price P₀ and now the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax? For demand curve D₀

Figure 4-4 -Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $9

Which term refers to a legally established minimum price that firms may charge?

Economists are reluctant to state that price controls are desirable or undesirable because

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

Figure 4-1 Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1.What is the total amount that Arnold is willing to pay for 4 burritos?

The minimum wage is an example of a price ceiling.

David Card and Alan Kruger conducted a study of fast-food restaurants in New Jersey and Pennsylvania.The study found that

Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 4-8.How much of the tax is paid by producers?

A demand curve shows

The government proposes a tax on imported champagne.Buyers will bear the entire burden of the tax if the