Figure 5-3 Figure 5-3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40S1U1B1 S1U1B0in order to raise the price to $18. -Refer to Figure 5-3.At a price of $18,consumers are willing to buy 40 pounds of tiger shrimp.Is this an economically efficient quantity?

A) No,the marginal benefit of the 40th unit exceeds the marginal cost of that 80th unit. B) Yes,otherwise consumers would not buy 40 units. C) Yes,because $18 shows what consumers are willing to pay for the product. D) No,the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit. A) No,the marginal benefit of the 40th unit exceeds the marginal cost of that 80th unit. B) Yes,otherwise consumers would not buy 40 units. C) Yes,because $18 shows what consumers are willing to pay for the product. D) No,the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit.

Figure 5-9 -Refer to Figure 5-9.Suppose the market is initially in equilibrium at price P1, and then the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax?

A) The consumer will bear a smaller share of the tax burden if the demand curve is D1. B) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2. C) The consumer will bear a smaller share of the tax burden if the demand curve is D2. D) The consumer will bear the entire burden of the tax if the demand curve is D2,and the producer will bear the entire burden of the tax if the demand curve is D1. A) The consumer will bear a smaller share of the tax burden if the demand curve is D1. B) The consumer's share of the tax burden is the same whether the demand curve is D1 or D2. C) The consumer will bear a smaller share of the tax burden if the demand curve is D2. D) The consumer will bear the entire burden of the tax if the demand curve is D2,and the producer will bear the entire burden of the tax if the demand curve is D1.

Figure 5-3 Figure 5-3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40S1U1B1 S1U1B0in order to raise the price to $18. -Refer to Figure 5-3.What is the value of producer surplus at the equilibrium price of $15?

A) $80 B) $160 C) $240 D) $400 A) $80 B) $160 C) $240 D) $400

Exam 5: Economic Efficiency, Government Price Setting and Taxes

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.What is the total amount that Arnold is willing to pay for 2 burritos?

(Multiple Choice)

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Question 81

Economic efficiency in a competitive market is achieved when

(Multiple Choice)

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Question 82

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is the consumer surplus on the second burrito?

(Multiple Choice)

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Question 83

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $1.50,what is the consumer surplus on the first burrito?

(Multiple Choice)

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Question 84

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

(Multiple Choice)

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Question 85

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

(Multiple Choice)

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Question 86

If the market price is at equilibrium,the deadweight loss is maximised.

(True/False)

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Question 87

Figure 5-3 Figure 5-3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40in order to raise the price to $18. -Refer to Figure 5-3.At a price of $18,consumers are willing to buy 40 pounds of tiger shrimp.Is this an economically efficient quantity?

(Multiple Choice)

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Question 88

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is Arnold's consumer surplus?

(Multiple Choice)

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Question 89

Which of the following statements is true?

(Multiple Choice)

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Question 90

Figure 5-7 Figure 5-7 shows the market for beer.The government plans to impose a unit tax in this market. -Refer to Figure 5-7.As a result of the tax,is there a loss in consumer surplus?

(Multiple Choice)

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Question 91

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.Suppose that the quantity of labour supplied decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

(Multiple Choice)

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Question 92

Table 5.7 -Refer to Table 5-7.The equations above describe the demand and supply for Bubba's Fried Jellybeans.The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units.What is the value of economic surplus in this market?

(Multiple Choice)

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Question 93

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of consumer surplus after the imposition of the ceiling?

(Multiple Choice)

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Question 94

Which of the following is not a consequence of minimum wage laws?

(Multiple Choice)

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Question 95

If the price of hairspray is represented by equation P = 10 - 0.2 Q_D,then the corresponding quantity of hairspray demanded is represented by the equation

(Multiple Choice)

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Question 96

Figure 5-9 -Refer to Figure 5-9.Suppose the market is initially in equilibrium at price P₁,and then the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax?

(Multiple Choice)

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Question 97

Using a supply and demand graph,illustrate the effect of the addition of a $10.00 unit tax on digital cameras,where the entire tax burden falls on the seller.Assume the equilibrium price before the tax is $125 and the equilibrium quantity is 50 000.What happens to the price and quantity after the tax is implemented?

(Essay)

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Question 98

Figure 5-3 Figure 5-3 shows the market for tiger shrimp.The market is initially in equilibrium at a price of $15 and a quantity of 80.Now suppose producers decide to cut output to 40in order to raise the price to $18. -Refer to Figure 5-3.What is the value of producer surplus at the equilibrium price of $15?

(Multiple Choice)

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Question 99

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.If a minimum wage of $11.50 is mandated,there will be a

(Multiple Choice)

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Question 100

Showing 81 - 100 of 187

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.What is the total amount that Arnold is willing to pay for 2 burritos?

Economic efficiency in a competitive market is achieved when

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is the consumer surplus on the second burrito?

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $1.50,what is the consumer surplus on the first burrito?

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

If the market price is at equilibrium,the deadweight loss is maximised.

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is Arnold's consumer surplus?

Which of the following statements is true?

Figure 5-7 Figure 5-7 shows the market for beer.The government plans to impose a unit tax in this market. -Refer to Figure 5-7.As a result of the tax,is there a loss in consumer surplus?

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.Suppose that the quantity of labour supplied decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Table 5.7 -Refer to Table 5-7.The equations above describe the demand and supply for Bubba's Fried Jellybeans.The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units.What is the value of economic surplus in this market?

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of consumer surplus after the imposition of the ceiling?

Which of the following is not a consequence of minimum wage laws?

If the price of hairspray is represented by equation P = 10 - 0.2 Q_D,then the corresponding quantity of hairspray demanded is represented by the equation

Figure 5-9 -Refer to Figure 5-9.Suppose the market is initially in equilibrium at price P₁,and then the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax?

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.If a minimum wage of $11.50 is mandated,there will be a

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Consumer Choice and Behavioural Economics

Technology, Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 5: Economic Efficiency, Government Price Setting and Taxes

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.What is the total amount that Arnold is willing to pay for 2 burritos?

Economic efficiency in a competitive market is achieved when

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is the consumer surplus on the second burrito?

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $1.50,what is the consumer surplus on the first burrito?

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

If the market price is at equilibrium,the deadweight loss is maximised.

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.If the market price is $2.00,what is Arnold's consumer surplus?

Which of the following statements is true?

Figure 5-7 Figure 5-7 shows the market for beer.The government plans to impose a unit tax in this market. -Refer to Figure 5-7.As a result of the tax,is there a loss in consumer surplus?

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.Suppose that the quantity of labour supplied decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Table 5.7 -Refer to Table 5-7.The equations above describe the demand and supply for Bubba's Fried Jellybeans.The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units.What is the value of economic surplus in this market?

Figure 5-5 Figure 5-5 shows the market for apartments in Springfield.Recently,the government imposed a rent ceiling of $1000 per month. -Refer to Figure 5-5.What is the value of consumer surplus after the imposition of the ceiling?

Which of the following is not a consequence of minimum wage laws?

If the price of hairspray is represented by equation P = 10 - 0.2 QD,then the corresponding quantity of hairspray demanded is represented by the equation

Figure 5-9 -Refer to Figure 5-9.Suppose the market is initially in equilibrium at price P1, and then the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax?

Table 5-4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5-4.If a minimum wage of $11.50 is mandated,there will be a

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: the Responsiveness of Demand and Supply

Consumer Choice and Behavioural Economics

Technology, Production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities, Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

If the price of hairspray is represented by equation P = 10 - 0.2 Q_D,then the corresponding quantity of hairspray demanded is represented by the equation

Figure 5-9 -Refer to Figure 5-9.Suppose the market is initially in equilibrium at price P₁,and then the government imposes a tax on every unit sold.Which of the following statements best describes the impact of the tax?