econ
a $3 tax has been imposed in this market.. the per united economic burden of the tax to the PRODUCER is
$1
a $3 tax has been imposed in this market. the per unit economic burden of the tax to the CONSUMER is
$2
how much REVENUE does the government generate from this tax
$21
Supply: Qs = 15 + 5P Demand: Qd = 60 - 10P The equilibrium price in the market is
$3
what is the value of CONSUMER SURPLUS for a consumer who is willing to pay 1-$ for the product
$4
what is the total value of CONSUMER surplus AFTER the imposition of the tax
$49
supposed that the professor offers to pay $70 to anyone willing to participate in the study. what is the total amount of PRODUCER SURPLUS that will result based on the information from your 4 friends
$65
If country A trades with Country B and in the process, country A gains $1 million worth of products from the trade, country B must bear a cost (or loss) of $1 million to balance out country A's gain, or in other words, trade is a zero-sum game.
False
If the recycling center is currently recycling at point E and want to move to point D, what is the opportunity cost of ONE plastic bottle as they make this transition
1/4th glass bottle
2021 poverty rate in the us is
11.6
if the university imposes a minimum wage of campus of $15 per hour for student workers, then
150 students jobs will not be filled abby student workers
Assuming that Aubree applies all the economic design rule, based on the chart above, how many frozen bananas will Aubree consume?
2 frozen bananas
what is the opportunity cost for Everette of producing ONE wooden ornament
3/4 of an ornament
when ticket prices to a Morgan wallen concert increased from 100 to 200 each, the number of tickets sold fell from 30,000 to 20,000. what is the price elasticity of demand for Morgan Wallen concert tickets based on this information
3/5
which if the following is NOT an example of COMAND AND CONTROL policy
50 cents per gallon gas
if jacobs tax liability increases from $5,000 to $10,000 when his income increases from $50,000 to $60,000, then his MARGINAL TAX RATE is
50%
If the Lexington recycling center is recycling 350 plastic bottles a fay, what is the maximum number of glass bottles they can recycle a day
75
which one of the following statements is NOT true with regard to international trade
A trade deficit is when a country exports exceed there imports
after watching the recent US open, Ashley decides that she wants to learn to play tennis. She buys tennis racquet for $100 and she signs up for pay as you go lessons in which she pays $30 each time she goes for a 30 minuet private lesson. After taking 5 lessons, Ashley decides she doesn't like to play tennis. which one of the following is the economically rational response
Ashley should take the 6th lesson if the benefit she things she would receive from the 6th lesson exceeds $180
cam goes to the Kroger store on Euclid hoping to buy frozen burritos, but when he gets to the freezer where he normally finds burritos, there are non left. in fact, he has gone 4 days in a row and hasn't been able to find any. which graph below is the most likely depiction of the current market for frozen burritos
C
If Everette and Layla were to each specialize in the production of one type of ornament, according to the law of comparative advantage
Everette should produce glass ornaments and Layla should produce wooden ornaments
if the price of a good increases by 10% and as a result the quantity the good that is supplied rises by 30%, we would say that this response is inelastic
F
Based on the graph below, if Malachi and haley were to specialize, Malachi would NOT benefit from trading with haley
False
Imagine an island economy that is periodically struck by an epidemic disease that affects only children. Suppose that the island has 1,000 children and that at the first sign of a new outbreak of this disease, the people have produced 1,000 doses of the antidote. If the island operates as a command economy, then the medicine is most likely to go to wealthier children whose parents can pay higher prices so all children will not get a dose.
False
Kaelin lives in a country with the following marginal tax rate schedule, if he earns $80,000 this year and you were asked to calculate his total liability, you would do this by multiplying $80,000 by .30
False
Many US businesses outsource call service centers to India because people in India have absolute advantage at providing call center services
False
Melissa is a 22 year old and lives in a state where recreation marijuana is legal for people who are 21 years of age and older and current marijuana prices are very affordable. She still chooses not to use and marijuana products because it conflicts with her values and she feels it is morally wrong. her response is an example of the invisible door in the market place
False
The equation Qs=20-4P represents a supply curve that is consistent with the law of supply
False
when the US government imposed an $800 tariff on sports cars imported from Germany, the price of these cars sold in the US increased from 50,000 to 50,200. based on the real economic burden of this tax we can conclude that supply is relatively MORE ELASTIC than DEMAND
False
you have been hired by Toyota to work as a personnel manager in their human resources department. it will be you job to hire people and you are trying to familiarize yourself with the relevant labor markets. of the two supply curves depicted below, one os the supply of mechanical engineers who design cars and take 4 to 6 years to train and earn an engineering degree. the other is the supply of assembly line workers who spend 3 months training before being able to work independently on the assembly line
False
Three basic questions regarding allocation must be made by all economies. Which of the following is NOT one of those questions
How can we reduce the poverty rate in our economy
which of the following is NOT a definition of Economics that we considered. Economics is the study of
How to allocate society resources in a way that eliminates scarcity
in the graph to the right, Qb represents an insufficient market outcome, because when at Qb in the market
MB<MC
in the city where the sriracha hot sauces production facilities are , residents are complaining of burning eyes and irritated throats caused by a powerful, painful odor that is emanating from the factory during production. which price and quantity combination represents the situation where the producers of sriracha ignore the consequences of its production on the city's residents
P1 and Q1
David got a job at a used car dealership in Lexington. the owner says that she will pay David a base monthly salary of 2000 and then he gets 200$ commission for every car that he sells. If we want to write an equation that shows the relationship between davids total monthly pay (P) before taxes and the number of cars (C) he sells in a month, then the monthly salary equation would be written as
P= 2000 + 200C
the equallibrium price and quantity AFTER the imposition of the tax are
PE = $16 and QE =7
the above graph is a supply and demand framework for the daily market for one-pint containers of crank and boom ice cream. what is the current market equilibrium price and quantity
Pe = $6 and Qe = 20 pints of ice cream
the inefficient but possible points of production on the graph above include only
Points I and H
According to one of the 10 principals of economics that we discussed, the standard of living in a country is most closely tied to its?
Productivity
which of the graphs most accurately depicts the SUPPLY OF LAND in Lexington
Sc
Based on the graph of the PPF above, we know that
Some of the resources used in production are better suited for recycling plastic and others are better for recycling glass
in the market for crank and boom ice cream, if the price increased from $8 to $12 per pint, which ONE of the following would result
The quantity demanded would decrease by 10 pints of ice cream
"president Biden said he would cancel 10000 in debt for those earning less than 125,000 per year and 20000 for those who had received pell grants for low income families." this statement is an example of a positive economic statement and not a normative economic statement
True
Consider the following demand and supply schedules. If the price in this market is $220 there will be pressure for the market place to fall
True
If the state legislature in Kentucky begins a new scholarship program offering money to high school students from Kentucky who attend Kentucky colleges and universities because the believe education imposes a positive externality, we would say that this subsidy is a MARKET BASED policy
True
The law of demand implies that demand curves are downward sloping (negatively sloped) because an increase in price will lead to a decrease in quantity demanded, ceteris parabis
True
When a country is operating at a point such as point C on the gaffer curve depicted to the right, If they want to increase tax revenue, they should CUT their tax rate
True
a local electronic store sells dell computers for which the income elastic of demand is Yd = -.5 and gateway computers for which the income elasticity of demand is Yd = 1.2. if average income levels are rising in the community where the store is located, then they should stock MORE gateway computers and FEWER dell computers
True
if an increase in the price of Sunkist brand orange soda leaves to an increase in the demand for Kroger brand orange soda, this implies the Sunkist orange soda and Kroger orange soda are substitutes in consumption
True
just a few days ago, hurricane Fiona cause significant damage in Puerto Rico. this likely caused the production possibility frontier for Puerto Rico to shift inward
True
if we were to write the linear equation that represents the PPF for Everette, the equation would be
W = 16 - 4/3 G
if yay want to determine if consumers view the scooters on the streets of Lexington that you can rent as a substitute product for bicycles, which type of elasticity should you calculate
Xd, cross price elasticity of demand
the deadweight loss that results from the imposition of a tax represents
a loss in consumer and producer surplus since no one receives the surplus and it is not transferred to government
which of the following is likely to have the highest value for income elasticity of demand, Yd
a ping pong table
suppose that you are hired by the Kroger corporation to work as a financial analyst. For this transaction, we woulds say you act as
a seller in a factor market
scalping is most likely to occur in a market that is experiencing
a shortage
a price ceiling placed at $4 in this market will cause
a shortage of 15 units
at a price of $8, the market for crank and boom ice cream is experiencing
a surplus of 15 pints of ice cream
which of the following is NOT considered to be a price ceiling
agricultural price supports for soybeans
which if the following is most likely to result in higher prices of tickets at movie theaters near your college campus
an unexpected increase in enrollment at your college
which of the following statements does NOT apply to a market economy
businesses face "soft" budget constraints and are given government financial support if they need help
consider the two demand curves below for admission to the Keeneland horse track. curve A reflects the demand of college age students and curve B reflects the demand of adults above the age of 55. If Keeneland wants to increase revenue from admission fees to the track they should
charge college students a hugger admission price then adults who are over 55
mike likes to shop at Costco because he feels that when he buys things in bigger quantities the price is discounted. on his most recent trip to Costco he noticed that many large families with 3 or more children were shopping at Costco. based on his observation, mike concluded that shopping at Costco must somehow improve fertility leading to families having more children. his friend mark and his wife are trying to conceive a child and mike suggest a trip to Costco might help. mikes occlusion is likely and error because
he has reversed causality in drawing his conclusion
Consider a small town in India near the western coastline. manufacturing takes place in this city and agricultural production does as well. which of the following scenarios is most likely to result in the graphical change depicted to the right
heavy winds knock down power lines that will leave the town with limited electricity for the next 6 months and farmers have begun to use a new fertilizer that improves crop yield.
you are the new president of a student run organization on campus. if you think you will generate more revenue for the organization by increasing membership dues, then you are assuming that the demand for joint by new members is
inelastic
One thing that economist do to help them understand how the relationship world works is to
make assumptions
markets are generally a good way to allocate resources and coordinate economic activity, but government intervention can sometimes improve market outcomes if there has been a market failure. ALL of the following are considered to be a source of market failure EXCPET
market prices in the market for dairy products begin to rise significantly because there is a shortage of dairy products
a price ceiling plates at $10 in this market will cause
no shortage or surplus
In Kentucky, which of the 4 items are subject to the 6% sales tax
only the massage and beer
scientific discoveries made by pharmaceutical companies lead to the creating of lifesaving drugs that can help many people and leads to future lifesaving discoveries by other researchers. which laws discourage underproduction of the research and development caused abby this positive production externality
patent laws
in class, we watched a video clip from a movie where tom hanks received a quarter every time he returned a luggage cart to the holding rack at the airport. the relationship between the total revenue tom generates in a day (Y) and the number of carts he returns in a day (X), is
positive and deterministic
a local restaurant provides a 20% discount on all meals to senior citizens aged 60 and older. everyone else must pay regular price. this practice is a form of
price discrimination
which of the following is NOT a function of prices in a market system
price ensure an equitable distribution of goods and derives among consumers
which of there following is NOT true regarding price controls
price floors are intended to protect consumers
the government frequently intervenes when there is a market failure related to a lack of information about a product that might cause harm. which of of the following is NOT true with regard to this type of intervention
private markers are typically more efficient then the government at protecting consumers from unknown danger
which of the following assumptions is NOT necessary for a market to be efficient
real economic tax burdens must be shared equally between producers and consumers
the prices elasticity of demand, Ed, for beef measures the
responsiveness of consumer changes in the price of beef
if the demand curve were steeper (more inelastic) then the one depicted here, then the size of the deadweight loss from the tax would be
smaller
consider the PPF for a country that produces factory manufactured goods and agricultural output as depicted by the production possibility frontier to the right. if this country wants to be able to consume at the point * then they must
specialize and trade with another country
on Saturday afternoon, Ethan has the options of attending the UK football game, studying for his upcoming economics exam, or picking up a shift at work to make some extra money. Ethan decides to go to the football game, but he thinks that if he didn't go to the game he would've spent his time studying for his exam. Ethans opportunity cost of attending the football game is
studying for his economics exam
In the market for crank and boom ice cream, crank and book discovers a quicker more efficient method of producing ice cream. which one of the following should result
supply would increase (a supply curve shift)
wilson has opened a taco food truck on Main Street called Wilsons tacos. when considering how economists classify respires, the oven in Wilsons food truck would be classified as
technology
logging in the amazon rainforest imposes negative externalities on the global environment. suppose that several billionaires who are concerned about this externality donate money and create a private fun that pays the people and businesses in the rain forest to NOT cut down trees. they can make more taking money from this fun then they could make from logging so they stop carrying down trees. this is an example of
the coase theorem
Consider the market for pizza in Lexington 1. 5 new pizza restaurants open in Lexington 2. average income levels in Lexington rise and pizza is a normal good What wiped be the likely impact in the market for pizza in Lexington
the equilibrium quantity of pizza will rise, but the overall impact in equilibrium price is uncertain
consider the market for microchips used in car production. which of the following would lead to an increase in the supply of microchips
the federal government subsidizes the production of microchips
the demand for lemons is very price INELASTIC. which of the following best explains that
the good is a necessary for consumers engaging in consumption of drinks and dishes that require lemons as an ingredient
pat is trying to figure out extra ways to make money while in college to help him pay his rent. a friend suggests that he consider selling pictures of his feet online. Pat thinks that sounds a little creepy, but as he is looking at buyer websites online, the price of feet pictures increases from $20 to $25 per photo and he decides to go ahead and sell photos of his feet in the market for feet photos. this is an outcome of
the invisible hand
recently congress passed the infrastructure investment jobs act into law. this is a law that provides $1 trillion dollars for infrastructure improvement in the US. all of the following regarding this law is true EXCEPT
the law restricts US companies from outsourcing and producing in other counties with low quality infrastructure
suppose pops popsicle stand opens across from crank and boom. consumers view pops popsicles as a popular and cheaper substitute for ice cream. what is likely to happen to the market for crank and boom.
the market equilibrium price for crank and boom ice cream will decrease
what does it mean to say that a price control is BINDING
the price control prevents the market price from reaching the true equilibrium value
which of the following is most likely to lead to a decrease in "quantity supplied" of cars in the us
the price of cars in the us falls
if the price elasticity of demand, Ed, is equal to 1.8 after taking the absolute value, this implies an ELASTIC response to a price change
true
in thinking about the economic role of the government we break activity down into two primary functions: protective productive
true
all of the following affect elasticity of supply, Es, except
whether the good is normal or inferior
which one of the following is an example of a positive externality
your neighbors remodeled there home, increasing its value, which in turn increases the value of your home (and those on your street)
