Econ Exam Chapter II

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

. If Roberta sells a shirt for $30, and her producer surplus from the sale is $21, her cost must have been $51

False

. The term tax incidence refers to the Boston Tea Party

False

A consumer's willingness to pay measures the cost of a good to the buyer

False

A supply curve can be used to measure producer surplus because it reflects the actions of sellers

False

A tax imposed on a market with an inelastic demand and an elastic supply will cause sellers to pay the majority of the tax

False

A tax levied on the buyers of a product shifts the supply curve upward (or to the left)

False

A tax on the buyers of popcorn increases the size of the popcorn market

False

A tax placed on a product causes the price the buyer pays and the price the seller receives to be higher

False

Amy buys a new dog for $150. She receives consumer surplus of $100 on her purchase. Her willingness to pay is $50

False

At Nick's Bakery, the cost to make his homemade chocolate cake is $3 per cake. He sells three and receives a total of $21 worth of producer surplus. Nick must be selling his cakes for $2 each

False

Cost refers to a seller's producer surplus

False

Denea produces cookies. Her production cost is $3 per dozen. She sells the cookies for $8 per dozen. Her producer surplus is $3 per dozen

False

Donald produces nails at a cost of $200 per ton. If he sells the nails for $500 per ton, his producer surplus is $200 per ton

False

If a tax is imposed on a market with elastic demand and inelastic supply, buyers will bear most of the burden of the tax

False

If buyers are required to pay a $0.10 tax per bag on Hershey's kisses, the demand for kisses will shift up by $0.10 per bag

False

If demand decreases, the price of a product, as well as producer surplus, increases

False

If you pay a price exactly equal to your willingness to pay, then your consumer surplus is negative

False

Janine would be willing to pay $50 to see Les Misérables, but buys a ticket for only $30. Janine values the performance at $20

False

Out-of-pocket expenses plus the value of the seller's own resources used in production are considered to be the seller's total revenue

False

Producer surplus equals Value to buyers - Amount paid by buyers

False

Producer surplus is the area under the supply curve to the left of the amount sold

False

Shannon buys a new CD player for her car for $135. She receives consumer surplus of $25 on her purchase. Her willingness to pay is $25

False

Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the buyers

False

Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will decrease, and producer surplus in the industry will decrease

False

Suppose that a tax is placed on DVDs. If the seller ends up paying the majority of the tax we know that the demand curve is more inelastic than the supply curve

False

Suppose that a tax is placed on books. If the buyer pays the majority of the tax we know that the supply curve is more inelastic than the demand curve

False

The Surgeon General announces that eating chocolate increases tooth decay. As a result, the equilibrium market price of chocolate increases, and producer surplus increases

False

The area below a demand curve and above the price measures producer surplus

False

The benefit received by buyers in the market is measured by the demand curve

False

The benefit received by sellers in a market is measured by the supply curve

False

The benefit received by the government from a tax is measured by deadweight loss

False

The initial effect of a tax on the buyers of a good is on the supply of that good

False

The marginal seller is the seller who cannot compete with the other sellers in the market

False

To analyze economic wellbeing in an economy it is necessary to use demand and supply

False

Total surplus in a market is represented by the total area under the demand curve and above the price

False

Total surplus in a market is the total costs to sellers of providing the goods less the total value to buyers of the goods

False

Total tax revenue received by government can be expressed as T/Q

False

We can say that the allocation of resources is efficient if producer surplus is maximized

False

Welfare economics is the study of the well-being of less fortunate people

False

When a tax is levied on a good only the quantity of the good sold will change

False

Willingness to pay measures the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

False

With respect to welfare economics, the equilibrium price of a product is considered to be the best price because it maximizes total revenue to firms and total utility to buyers

False

. In a market, total surplus is equal to producer surplus plus consumer surplus

True

.Economic analysis uses consumer and producer surplus to judge the effect of taxes on economic welfare

True

A demand curve measures a buyer's willingness to pay

True

A tax imposed on gasoline, will have buyers and sellers sharing the burden of the tax

True

A tax levied on the supplier of a product shifts the supply curve upward (or to the left)

True

A tax on a good raises the price buyers pay and lowers the price sellers receive

True

A tax on the sellers of cell phones will reduce the size of the cell phone market

True

A tax placed on the seller of a good raises the price buyers pay and lowers the price sellers receive

True

A tax placed on the seller of a product will raise equilibrium price and lower equilibrium quantity

True

A tax placed on the sellers of blueberries increases costs, lowers profit and shifts supply to the left (upward)

True

According to the graph shown, B + C represents total surplus in the market when the price is P1

True

Belva is willing to pay $65.00 for a pair of shoes for a formal dance. She finds a pair at her favorite outlet shoe store for $48.00. Belva's consumer surplus is $17

True

Buyers of a product will pay the majority of a tax placed on a product when supply is more elastic than demand

True

Consumer surplus equals the Value to buyers - Amount paid by buyers

True

Consumer surplus is a buyer's willingness to pay minus the price

True

Cost is a measure of the seller's willingness to sell

True

Deadweight loss measures the loss in a market to buyers and sellers that is not offset by an increase in government revenue

True

For the most part, a tax burden falls most heavily on the side of the market that is more inelastic

True

For the most part, all governments, federal, state, and local, rely on taxes to raise revenue for public purposes

True

For the most part, buyers and sellers share the burden of the tax

True

If a consumer is willing and able to pay $20.00 for a particular good but only has to pay $14.00, the consumer surplus is $6.00

True

If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will increase consumer surplus

True

If a tax is imposed on a market with inelastic demand and elastic supply, buyers will bear most of the burden of the tax

True

If a tax is levied on the seller of a product the demand curve will not change

True

If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus of that purchase would be zero

True

If the price of a good increases, consumer surplus decreases

True

In most markets, consumer surplus reflects economic well-being

True

In the end, tax incidence depends on the legislated burden

True

Suppose the demand for nachos increases. Producer surplus in the market for nachos will increase

True

Suppose there is an early freeze in California that ruins the lemon crop. Consumer surplus in the market for lemons decreases

True

The benefit from a tax is measured by the benefit received by those people who gain from government's expenditure of the tax revenue

True

The burden of a tax placed on a product depends on the supply and demand of that product

True

Total surplus = value to sellers - costs of sellers is NOT correct

True

When a good is taxed both buyers and sellers are worse off

True

When a tax is placed on the buyers of milk, the size of the milk market is reduced

True

When a tax is placed on the buyers of orange juice, the size of the orange juice market is reduced

True

When a tax is placed on the sellers of a product the size of the market is reduced

True

When analyzing the economic effects of government policies, supply and demand are useful tools of analysis

True

When technology improves in the ice cream industry, consumer surplus will increase

True


संबंधित स्टडी सेट्स

What objects are in the Solar System? Chapter 2 - Lesson 2

View Set

FIN 330 - Chapters 1,4,5, FIN 330 Final Exam, FIN 330

View Set

ADV Med-Surg Hematology Questions (2018)

View Set

English: Tale of Two Cities- Chapter 9-24 (Book 2) + Chapter (Book 3)

View Set

ALTA - CH 6 - THE NORMAL DISTRIBUTION

View Set

Chapter 7: Retention and Motivation

View Set

Module 4. Evaluating Employee Performance

View Set