FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Table 4-4 Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. -Refer to Table 4-4.If a minimum wage of $10.50 is mandated there will be a

A) shortage of 30,000 units of labor.
B) surplus of 30,000 units of labor.
C) shortage of 60,000 units of labor.
D) surplus of 60,000 units of labor.

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R₀. -Refer to Figure 4-5.Suppose that instead of a price ceiling,the government imposed a price floor of R₁.What is the area representing consumer surplus after the imposition of the price floor?

A) A
B) A+ B + D
C) C + E
D) B + C + D + E

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Figure 4-1 Figure 4-1 shows Kendra's demand curve for ice-cream cones. -Refer to Figure 4-1.If the market price is $2.50,what is Kendra's consumer surplus?

Table 4-2 -Refer to Table 4-2.The table above lists the highest prices five consumers are willing to pay for a concert ticket.If the price of one ticket falls from $50 to $20

Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays.

For most goods and services,the burden of a tax is on the sellers.

Figure 4-10 -Refer to Figure 4-10.Suppose the market is initially in equilibrium at price P₁ 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 D₁

What is deadweight loss? When is deadweight loss equal to zero?

Table 4-7 -Refer to Table 4-7.The equations above describe the demand and supply for Pauline's Pickled Pomegranates.The equilibrium price and quantity for Pauline's Pickled Pomegranates are $30 and 15 thousand units.What is the value of consumer surplus?

The demand and supply equations for the peach market are: Demand: P = 24 - 0.5Q Supply: P = -6 + 2.5Q where P = price per bushel,and Q = quantity (in thousands). a.Calculate the equilibrium price and quantity. b.Suppose the government guaranteed producers a price of $24 per bushel.What would be the effect on quantity supplied? Provide a numerical value. c.By how much would the $24 price change the quantity of peaches demanded? Provide a numerical value. d.Would there be a shortage or surplus of peaches? e.What is the size of this shortage or surplus? Provide a numerical value.

Table 4-7 -Refer to Table 4-7.The equations above describe the demand and supply for Pauline's Pickled Pomegranates.What are the equilibrium price and quantity (in thousands) for Pauline's Pickled Pomegranates?

Table 4-4 Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. -Refer to Table 4-4.Suppose that the quantity of labor demanded increases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

The graph below represents the market for alfalfa.The market price is $7.00 per bushel.Identify the areas representing consumer surplus,producer surplus,and economic surplus.

Economists have shown that the burden of a tax is

Table 4-4 Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. -Refer to Table 4-4.Suppose that the quantity of labor supplied decreases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

Figure 4-5 Figure 4-5 shows the market for apartments in Bay City.Recently,the government imposed a rent ceiling at R₀. -Refer to Figure 4-5.What is the area that represents consumer surplus after the imposition of the ceiling?

________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production,and in which the sum of consumer surplus and producer surplus is at a maximum.

If the price of garlic is represented by equation P = 25 - Q_D,then the corresponding quantity of garlic demanded is represented by the equation

In a competitive market when there is no deadweight loss,

Table 4-3 -Refer to Table 4-3.The table above lists the marginal cost of polo shirts by Marko's,a firm that specializes in producing men's clothing.If the market price of Marko's polo shirts is $18