micro econ final

Refer to Figure 9-22. Suppose the government imposes a tariff of $20 per unit. The amount of revenue collected by the government from the tariff is

$12,000

Refer to Figure 6-10. A price floor set at

$16 will be binding and will result in a surplus of 10 units.

Refer to Figure 9-22. Suppose the government imposes a quota of 600. The wealfare loss due to the quota will be

$18,000

Assume that Qd = 80-2P and Qs = 2P-20 and the market is in equilibrium. If the government imposes a price ceiling at $15 in this market, what is the loss in producer surplus?

$200

Scenario: The equation of a demand curve for computers is, QD=200-2P where QD represents the quantity of computers demanded, and P represents the price of computers. The equation of a supply curve for computers is, QS=-60+3P where QS represents the quantity of computers supplied,, and P represents the price of computers. What is the consumer surplus in the market at the equilibrium price and quantity?

$2304

Refer to Figure 6-18. The price that buyers pay after the tax is imposed is

$24

Refer to Figure 9-13. Consumer surplus before trade is

$3,600

Refer to Figure 6-10.1. If the government imposes a quota of 14, the price of imports i

$4

Refer to Figure 6-21. What is the amount of the tax per unit?

$4

Suppose the demand curve is: P = 300 - 2QD and the supply curve is: P = 100 + 3QS. What is consumer and producer surplus in the market at the equilibrium price and quantity?

$4000

Refer to Figure 9-12. Equilibrium price and equilibrium quantity without trade are

$42 and 1,200

Refer to Figure 6-18. The per-unit burden of the tax on sellers is

$6

Refer to Figure 9-4. The change in total surplus in Nicaragua because of trade is

$625, and this is an increase in total surplus.

Refer to Figure what is the equilibrium price and quantity in this market?

$80 and 1200 units

What is consumer and producer surplus in this market at the equilibrium price and quantity?

$96,000

Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. What will be the new equilibrium quantity in this market?

20 units

If the price is 25, the market has a surplus, before the market comes back to equilibrium, equal to

40 units

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by

40%

Refer to Table 6-1. Suppose the government imposes a price floor of $70 on this market. What will be the size of the surplus in this market?

600 units

Refer to Figure 9-11. Consumer surplus in this market after trade is

A+B+D

Refer to Figure 9-15. Producer surplus with the tariff is

C+G

Refer to Figure 9-15. As a result of the tariff, there is a deadweight loss that amounts to

D+F

Suppose Ireland exports beer to China and imports pineapples from the United States. This situation suggests that

Ireland has a comparative advantage relative to China in producing beer, and the United States has a comparative advantage relative to Ireland in producing pineapples.

Refer to Figure 9-15. With the tariff, the quantity of saddles imported is

Q3-Q2

A quota is

a limit on the quantity of imports

Refer to Figure 6-12. When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2,

a shortage will occur at the new market price of P2.

The fact that someone with a high risk of medical problems is likely to buy a large amount of health insurance is an example of

adverse selection

Refer to Figure above. Which of the following statements is correct

all of the statements are correct

Economists use basic psychological insights in the field of study called

behavioral economists

Employers can try to overcome the moral-hazard problem involving their employees by

better monitoring their employees' work efforts.

Refer to Figure 6-11. If the government imposes a price floor at $10, it would be

binding if market demand is Demand A and non-binding if market demand is Demand B.

The demand for salt is inelastic, and the supply of salt is elastic. The demand for caviar is elastic, and the supply of caviar is inelastic. Suppose that a tax of $1 per pound is levied on the sellers of salt, and a tax of $1 per pound is levied on the buyers of caviar. We would expect that most of the burden of these taxes will fall on

buyers of salt and the sellers of caviar.

When the price increases from $4 to $6 and the quantity demanded decreases by 2 units, the price elasticity of demand is

cannot be determined from the information given

If the government removes a binding price floor from a market, then the price received by sellers will

decrease, and the quantity sold in the market will increase.

Refer to Figure 6-2. The price ceiling causes quantity

demand to exceed quantity supplied by 85 units

Refer to Figure 9-3. With trade, China will

export 250 pencil sharpeners.

A country has a comparative advantage in a product if the world price is

higher than that country's domestic price without trade.

Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that

if Canada were to allow trade, it would export hockey stick

If the price elasticity of demand for a product is |-2|, this implies that

if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.

Refer to Figure 6-16. In this market, a minimum wage of $2.75 is

nonbinding and creates neither a labor shortage nor unemployment

a tax imposed on the sellers of a good will

raise the price buyers pay and lower the effective pricer sellers receive

A brand of wine is priced at only $5 per bottle, far below the market price of most high quality wines. Before any reputation exists for the wine, consumers buy very little of this inexpensive wine because they interpret the low price to mean that the wine is of poor quality. The company decides to change the label on the wine to show that it has won awards for quality. This label change is an example of

signaling

Refer to Figure above. If the price is above the equilibrium price, then there is a ________ and the market forces will restore equilibrium by ________ the price

surplus, decreasing

Refer to Figure 6-30. In which market will the majority of the tax burden fall on buyers?

the market shown in panel (b)

Trade enhances the economic well-being of a nation in the sense that

trade results in an increase in total surplus compared with a closed economy.