Econ 2022 ch8&14 bonus

If the market price is 10$ what is the firms total cost

35$

The deadweight loss associated with this tax amounts to

80$ and this figure represents the surplus that us lost because the tax discourages mutually advantageous trades between buyers and sellers

Construction work is much riskier than working as a server at a restaurant. As a result we'd expect a different in wages between the two jobs which is known as

Compensating differential

Which graph correctly illustrates the relationship between the size of a tax and the size of dwl associated with tax

Exponential graph up

The firm should shut down if the market price is

Less than 3$

Firms would be encouraged to enter this market for all prices that exceed

P4

If the demand curve for wedding cakes shifts right then the value of the marginal product of labor for bakers will

Rise

As a result of the tax

the market experiences a deadweight loss of $80

Why does baseball star make more than dentist

Baseball star can provide his services to millions of people simultaneously

Suppose that the market for labor is initially in equilibrium. An increase in worker productivity will cause the equilibrium wage to _____ and the equilibrium quantity to ____\

Rise and risw

Earthquake destroys land. What happens

Supply of land decreases, causing the marginal productivity of the remaining land to increase and the rent increase

Which of the following is correct if the employer discriminated by hiring only workers with 20/20 vision

The employer will face higher costs than the firms that only focus on maximizing profits

In which of the following instances would the deadweight loss of the tax on airline tickets increase by a factor of 9

The tax on airline tickets increases from $20 per ticket to $60 per ticket.

Profit maximizing firms enter a competitive market when existing firms in that market have

average total costs less than market price

A change in the supply of one factor of production

can alter the earnings of all of the other factors.

When a tax is imposed on a good

equilibrium quantity of the good always decreases

Competitive markets are characterized by

free entry and exit by firms

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

increase tax revenue and decrease the deadweight loss.

If the value of the marginal product of labor exceeds the wage then hiring another worker

increases the firm's profit.

Evidence of discrimination in labor markets

is difficult to verify by reference to differences in average wage rates.

Because of diminishing returns a factor in abundant supply has a

low marginal product and a low rental price

If the size of a tax increases, tax revenue

may increase, decrease, or remain the same

Suppose a firm in a competitive market earned $3,000 in total revenue and had a marginal revenue of $30 for the last unit produced and sold. What is the average revenue per unit and how many units were sold

$30 and 100 units

As a result of the tax, consumer surplus decreases by

160$, producer surplus decreases by 160, tax revenue is 240$ and deadweight loss is 80

If a competitive firm is currently producing a overly of output at which marginal cost exceeds marginal revenue, then

A one unit decrease in output will increase the firms profit

Which of the following scenarios exhibits statistical discrimination

A study comes out showing that brunettes are more likely to work harder than blondes, so companies prefer hiring brunettes

If there is systematic discrimination against a group of workers then the wage paid to those workers will likely be

Lower due to a lower demand for workers in that grouo

Suppose the government is considering levying a tax in one or more of the markets. Which markets will allow the government to minimize the deadweight loss

Markets B and D, demand is in elastic and supply is in elastic

If the market price rises above $6.5 the firm will earn

Positive economic profits in the short run

15$ tax imposed on widgets, tax reduces equilibrium quantity by 200, what is deadweight loss

1500$

If the market price is 6$ what is the firms short run economic profit

0$

If there are 100 identical firms in this market, what is the value of Q2

20,000

As a result of the fire, as small business owner loses some of her computers and equipment. If the property of diminishing returns applies to all factors of production she should expect to see

An increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States

Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.

If it wants to maximize profit, cold duck airlines should

Continue flying until the lease expires and then drop the run

Whenever a perfectly competitive firm chooses to change its level of output it's marginal revenue

Does not change

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers productivity and therefore their wages

Human capital theory

Suppose the market price for firms output increases. Holding all else constant the equilibrium quantity of capital equipment will

Increase

Assume the market for hats is competitive. An increase in the market price of hats

Increases demand for workers who make hats and increases their equilibrium wage

When employers sort employment applications into high ability and low ability people based on whether or not the applicant has a college degree they are providing evidence in support of the

Signaling theory of education

Suppose the wage earned by pear pickers falls. Which would we most likely observe as a result.

Supply of orange pickers would increase and the equilibrium wage of orange pickers would decrease

If T represents the size of the tax on a good and Q represents the quantity of the food that is sold, total tax revenue is expressed as

TxQ

Assuming that all things are equal including wage, which is correct

The quantity of labor supplied for fun jobs exceeds that of dull jobs

Which of the following statements is correct

Total surplus before the tax is imposed is 500$

What happens to the total surplus in a market when the government imposes a tax

Total surplus decreases

Most economists believe that the higher average salaries earned by men in comparison to women arise from

a variety of factors, including differences in human capital, compensating differentials, and discrimination.

If consumers do not discriminate between bald barbers and barbers with hair then

competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical.

Sometimes wages are set above the equilibrium level when firms pay

efficiency wages to reduce turnover.

A competitive market is in long run equilibrium. If demand decreases, we can be certain that price will

fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium.