econ final

use figure: The market for exercise apps. if the government imposes a tax of $3 in this market, consumers will pay ____ more per app and purchase ______ fewer apps a. $1.50; 15 b. $3; 15 c. $3; 25 d. $1.5; 25

a. $1.50; 15

a price control is a. a legal restriction on how high or low a market price may go b. a lower limit on the quantity of some good that can be bought or sold c. the legal price, controlled by the firm that produces it d. a tax on the purchase of a good that controls the market price

a. a legal restriction on how high or low a market price may go

if the government imposes a $15 excise tax on cheap wine, and the demand price of cheap wine increases by $12 a. consumers are paying more of the tax than producers b. producers are paying more of the tax than consumers c. the quantity of cheap wine sold will increase d. the government will receive less tax revenue than anticipated

a. consumers are paying more of the tax than producers

consider the figure gain in producer surplus from the sale of cappuccino machines. Which areas represent producer surplus when the price is equal to p2 a. d, e, and f b. b and c c. d and e d. a, b, and c

a. d, e, and f

excise taxes that raise the most revenue and cause the least deadweight loss are likely to be levied on goods for which demand has a ______ elasticity and supply has a _______ elasticity a. low, low b. high, low c. low, high d. high, high

a. low, low

use figure: The market for beyond meat burgers. if the market is originally in equilibrium, and the government imposes an excise tax of $0.80 per unit of the good sold, consumer surplus will be reduced by a. $105 b. $175 c. $90 d. $240

b. $175

use figure: the alaskan crab market. If the government imposes a quota limiting sales of crab to 500 pounds, the quota rent per pound is a. $15 b. $5 c. the quota rent cannot be determined from the information provided d. $10

b. $5

the table producer surplus and theater tickets shows each student opportunity cost of selling a ticket to Hamilton on Broadway. Assume that each student has one ticket to sell. If the price of a ticket to Hamilton is $55, the total producer surplus for five students is a. $64 b. $84 c. $79 d. $54

b. $84

use figure: the market for summer sandals. the government recently levied a $10 tax on the producers of summer sandals. What areas in the graph identify consumer and producer surplus after the tax was levied a. d+e+f b. a+f c. a+b+c d. a+b+c+d+e+f

b. a+f

in much of the country, car owners choose to operate their vehicles using gasoline or electricity, both of which are normal goods. Which factor would cause an increase in the demand for gasoline a. an increase in the price of gasoline b. an increase in consumer incomes c. a decrease in the price of electricity d. a decrease in consumer incomes

b. an increase in consumer incomes

which combination of changes may lead to an increase, decrease, or no change in quantity a. an increase in both supply and demand b. an increase in demand with a decrease in supply c. a decrease in both demand and supply d. an increase in supply with no change in demand

b. an increase in demand with a decrease in supply

sunk costs: a. can dramatically increase marginal costs b. are not considered in marginal analysis c. help determine the optimal quantity of an activity d. are the same as variable costs

b. are not considered in marginal analysis

which factor would cause a decrease in the supply of a good a. expectations that the price of the good will fall b. decrease in the number of producers c. an advance in the technology of producing the good d. a decrease in the prices of goods used to produce it

b. decrease in the number of producers

points outside the production possibility frontier are a. efficient b. infeasible c. regions of economic growth d. infeasible

b. infeasible

a consumers willingness to pay is the a. price at which a good or service is sold b. maximum price at which he or she would buy a given good or service c. maximum price at which he or she would sell a given good or service d. the cost of producing a good or service

b. maximum price at which he or she would buy a given good or service

when the price of big screen televisions decreases, the a. quantity supplied increases b. quantity supplied decreases c. supply decreases d. supply increases

b. quantity supplied decreases

use table: market for apartments in san francisco. If a price ceiling of $1900 is imposed in this market, the result will be inefficiency in the form of a ____ million apartments a. surplus of 0.2 b. shortage of 0.2 c. surplus of 0.6 d. shortage of 0.6

b. shortage of 0.2

consider the market for quinoa. What happens if there is an increased demand for quinoa cereal, while at the same time a new quinoa seed that dramatically increases yield per acre becomes available a. price and quantity decrease b. the change in price is indeterminate, quantity increases c. the change in price is indeterminate, quantity decreases d. price increases, the change in quantity is indeterminate

b. the change in price is indeterminate, quantity increases

use figure and table 1: the market for lyft rides. If the government imposes an excise tax of $2 per ride on producers, then the government will collect tax revenues of ______> However, the tax will cause a _______ deadweight loss to society a. $24 million, $4.5 million b. $8 million, $1 million c. $16 million, $2 million d. $48 million, $6 million

c. $16 million, $2 million

use table: the market for kombucha. The table shows the quantity demanded and quantity supplied of kombucha at various prices. If the government imposes a price ceiling of $3 per bottle of kombucha, the quantity of kombucha supplied will be _______ bottles a. 7 b. 10 c. 8 d. 9

c. 8

which tax best illustrates the ability to pay principle of tax fairness? a. tolls charged to drivers for upkeep of roads and highways b. tax on all residents of new york city used to fund central park c. a property tax, proportional to the value of homes, charges to homeowners to fund primary and secondary education d. a lottery tax that pays for police and fire protection in Vermont

c. a property tax, proportional to the value of homes, charges to homeowners to fund primary and secondary education

when economists refer to a decision made at the margin, they mean a decision that is based on a. the value of an unimportant, or marginal activity b. a value entered as an explanatory item in the margin of a balance sheet or other accounts c. a value that is most appropriately identified in a footnote d. the value of one more unit of a good or activity

c. a value that is most appropriately identified in a footnote

the market for lobster is in equilibrium. Which factor is most likely to increase the equilibrium price of lobster? a. decreasing household incomes, with lobster being a normal good b. a record catch c. an increase int he price of salmon, a substitute in consumption d. more boats fishing for lobster

c. an increase int he price of salmon, a substitute in consumption

if the market for oranges is in equilibrium without any outside intervention that affects the equilibrium price a. the total surplus is minimized b. a few mutually beneficial trades are missed c. consumer and producer surplus are maximized d. there is some deadweight loss

c. consumer and producer surplus are maximized

use table: The market for sale and vinegar chips. if the price of sale and vinegar chips is$0.50, there is an a. excess supply of 70 bags b. excess demand of 35 bags per month c. excess demand of 70 bags per month d. excess supply of 35 bags per month

c. excess demand of 70 bags per month

an inferior good is one for which a ____ in buyers incomes causes a _____ a. increase, increase in demand b. decrease, decrease in demand c. increase, decrease in demand d. increase, increase in quantity demanded

c. increase, decrease in demand

if they produce only sandwiches in a single day, seraphim can produce 10 sandwiches and Abigail can produce 5 sandwiches. If they make only root beer floats, in a single day, seraphim can produce 10 root beer floats, and Abigaial can produce 4 root beer floats. Therefore, ______ has an absolute advantage and a comparative advantage in making _________ a. dabigail, sandwiches b. abigail, root beer floats c. seraphim, root beer floats d. seraphim, sandwiches

c. seraphim, root beer floats

if an excise tax is imposed on whiskey and collected from producers, the _____ curve will shift ______ by the amount of the tax a. demand, upward b. supply, downward c. supply, upward d. demand, downward

c. supply, upward

which statement is normative a. the number of women in the labor force increased markedly during the past 100 years b. the federal minimum wage is higher today than it was 20 years ago c.the best way to encourage growth in the economy is through education d. children in the united states are mandated by law to attend school until they reach a certain age

c.the best way to encourage growth in the economy is through education

Use Table: Consumer surplus and opera tickets. The table shows Columbia university students willingness to pay to see verdis aida at the metropolitan opera house. Assume that each student wants to buy one ticket. If the price of a ticket to see aida is $50 and there is no other market for tickets, total consumer surplus for the five students is: a. 320 b. 130 c. 270 d. 105

d. 105

use table: marginal analysis of sweater production. the optimal quantity of sweaters produced is a. 4 b. 2 c. 5 d. 3

d. 3

use figure: the marginal analysis of calligraphy pens. you are considering purchasing calligraphy pens. how many calligraphy pens will you buy a. 1 b. 2 c. 3 d. 4

d. 4

use table: Production possibilities schedule. The opportunity cost of producing the third plain is ___ trains a. 2 b. 4 c. 8 d. 6

d. 6

if a demand curve is downward sloping, a decrease in supply with no change in demand will lead to a _____ in the equilibrium quantity and ___ in equilibrium prices a. increase, decrease b. decrease, decrease c. decrease, increase d. decrease, increase

d. decrease, increase

the law of demand states that, other things equal, as the price: a. increases, the quantity demanded will increase b. decreases, the demand curve will shift to the left c. decreases, the demand curve will shift to the right d. decreases, the quantity demanded will increase

d. decreases, the quantity demanded will increase

david is trying to decide how many hours he should study economics for his upcoming test and is trying to apply the tools he has learned about in class to assist him in his decision. He know he should study up to the point where the marginal benefit of studying ____ the marginal cost of studying a. eliminates b. is less than c. exceeds d. equals

d. equals

the incidence of a tax a. is a measure ofd the revenue the government receives from it b. refers to who writes the check to the government c. is a measure of the deadweight loss generated by the tax d. refers to who really bears the burden of the tax

d. refers to who really bears the burden of the tax

the likely result of a binding price floor is a _____ of the good at a price )))) the equilibrium price a. shortage, below b. surplus, below c. shortage, above d. surplus, above

d. surplus, above

the production possibility frontier is bowed out because a. while resources have many uses, the current combination of resources is inefficient b. resources are scarce, so they cost more c. economic growth leads to inefficiency d. the resources that are available are not equally suited fro all typed of production

d. the resources that are available are not equally suited fro all typed of production

demand for Bartlett pears is relatively elastic compared to the supply of Bartlett pears, so if a tax is imposed on consumers of Bartlett pears, the tax incidence a. will all equally on consumers and producers b. will fall on consumers more than producers c. cannot be determined without more information d. will fall on producers more than consumers

d. will fall on producers more than consumers