economics exam 2

no the decrease in the quantity of hours worked as a result of the wage increase had to have been relatively large to reduce the total amount workers in low wage jobs received

shouldn't an increase in the minimum wage raise rather than lower the amount paid to low wage workers

no imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control

shouldn't price controls help reduce malnutrition by lowering the price of food so more people can afford

The actual division of the burden of a tax

tax incidence indicates

it means sugar can be imported into the United States free from government imposed restrictions

what does the article mean by a free trade Rejime

a rise in the number of buyers a decline in vegetarianism

which could cause a movement from point a to c

positive analysis contribute to the debate on economic policy but in many cases such as the minimum wage it cannot resolve the debate supporters of increasing the minimum wage may consider its trade off to be acceptable while opponents of increasing the minimum wage may consider its trade-off to be a bad one the result of the study reinforces the trade-off involved with the minimum wage some workers gain while other workers lose

which of the following statements regarding normative/positive analysis of the minimum wage is true

it protects US sugar producers by reducing foreign competition and allowing them to sell more to US consumers at a higher price

why doesn't the United States have a free trade regime for sugar

The taxi business was very profitable in San Francisco and given the small supply of the medallions the equilibrium price skyrocketed. by 2018 the increased popularity of rideshare companies like Uber and Lyft made it possible for individuals to provide taxi service without purchasing a medallion

why would taxi medallions have been worth $250,000 in 2008 why was it apparently impossible to sell them at any price in 2018

A price ceiling set below the equilibrium price will cause consumers to increase their quantity demanded but the quantity of meat farmers supply decreases consumers can only buy the quantity of meat farmers offer for sale so the quantity of meat they consume declines

with prices kept low by price controls shouldn't consumers in Venezuela have been buying more beef pork and chicken not less

yes the article is correct in its use of the word demand

A different article in the Wall Street Journal noted electric cars are poised to reduce US gasoline demand by 5% over the next two decades do you agree with how this article uses the word demand

Black market

A market in which buying and selling take place at prices that violate government price restrictions

change in quantity demanded

A movement from a to B on a demand curve represents

change in quantity supplied

A movement from a to B on a supply curve represents a

no a change in the price of oil affects the quantity of oil demanded not the demand for oil

an article in the Wall Street Journal noted that an increase in the price of oil quickly reduces demand for oil do you agree with how the article uses the word demand

The substitution effect is the decrease in quantity demanded because the product is more expensive relative to other goods and the income affect is the decrease in quantity demanded owing to the decline in consumers purchasing power

an increase in the price of a product causes a decrease in quantity demanded because of the income and substitution affects. More specifically

decrease

as a result of not having a free trade regime the efficiency of the us economy will

Demand curve for hospital facilities will shift to the right

as the first baby boomers become older than 65 the

at least $15.99 since this is the difference between the price she is willing to pay and the actual price she pays but she could have been willing to pay more than $79.95 for the coat

Sophia decided to buy a coat that had a price tag of $79.95. when she brought the coat to the stores sale clerk she was told that the coat was on sale and she would pay 20% less than the price on the tag after the discount was applied Sophia paid $63.96, $15.99 less than the original price the value of her consumer surplus from this purchase is

social surplus

because economic surplus is the sum of the benefit to firms and the benefit to customers it is the best measure we have of the benefit to society from the production of a particular good or service. For this reason it is appropriate to label economic surplus as a

as more books become available as free downloads readers of these books recommend them to other readers causing an increase in the demand for both the print and the digital versions of the book particularly among readers who prefer to read a physical book

briefly discuss what might account for this result and why it differs from the answer you gave to part a hint why was the finding of increased sales of physical books particularly strong for less popular books

The difference between the highest price a consumer is willing to pay and the price the consumer actually pays

consumer surplus is

The reduction in economic surplus resulting from a market not being in competitive equilibrium

deadweight loss is

yes this additional information reinforces the increase in demand for visits to the Met

The article also explained that New York City experienced an increase in the number of tourists during 2018 and that during the year the met offered several exhibitions that received good reviews. does this additional information help you answer the question in part a

what the apartments landlords offer for rent will become rundown and in need of repairs. rent control reduces the frequency of turnover at a particular property thereby reducing the landlords incentive to properly maintain their property

The deterioration of the housing stock means that

when income increases demand for a normal good increases while demand for an inferior good falls

The distinction between a normal and an inferior good is

no whoever bears the burden of the tax is not affected by who legally is required to pay the tax to the government

do the people who are legally required to pay a tax always bear the burden of the tax

no workers who continued to work the same or slightly fewer hours then they worked before the increase in the minimum wage are better off because their total income increased.

does this result mean that no low wage workers in Seattle benefited from the increase in the minimum wage

A market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production is a market outcome in which the sum of consumer surplus and producer surplus is at a maximum

economic efficiency is

complements because the decrease in the price of digital books to zero is causing an increase in the quantity demanded for print copies of the same book

The goal of the Google books project is to produce a digital version of every book ever written in academic paper analyze the effect of Google books on the market for print or physical books they concluded that for their sample of books digitization increase sales of physical additions by about 35% especially for less popular works these findings show that digital and print copies of books are

The law of demand

The quantity demanded of a product is inversely related to its price

consumer, producer, maximum, equilibrium

economic surplus in a market is the sum of _ surplus and _ surplus. In a competitive market with many buyers and sellers and no government restrictions economic surplus is at a _ when the market is in _

The sum of consumer surplus and producer surplus

economic surplus is

all of the above

economist define economic efficiency in this way

right

The supply curve for baseballs signed by mantle should be an upward sloping line that is to the _ of the supply curve for baseballs signed by ford

The quantity of taxis available is lower because the city issues only a limited number of medallions the equilibrium price for taxi rides will increase

The supply curve for taxi rides shifts to the left because

it is likely that the supply curve for oil shifted to the right because firms will be more likely to increase the supply of oil today when prices are higher

is it possible that the supply curve for oil also shifted suppose you were told that managers at oil firms were convinced that oil prices in the future we're going to be significantly lower than they are today would this fact help you answer the question. given that managers at oil firms were convinced that oil prices in the future were going to be significantly lower than they are today,

no it is much more likely that during 2018 there was an increase in demand for visits to the Met

according to an article on cranesnewyork.com in 2018 the Metropolitan Museum of art in New York City had record attendance of 7.36 million an increase of 5% over the previous year. During 2018 the met had also increased the price of attendance. Can we conclude from this information that the demand curve for visiting the Met is upward sloping

yes a higher price of oil causes an increase in the quantity of oil supply which we show by a movement upwards along the supply curve for oil

according to an article the price of oil produced in the United States had increased by 25% since the beginning of the year at the same time US oil production was at a record high are these two facts alone holding everything else constant consistent with a movement along the supply curve for oil

there is an inverse relationship between price and quantity demanded

according to the law of demand

there is a positive relationship between price and quantity supplied as the price of a product increases firms will supply more of it to the market

according to the law of supply

The difference between the lowest price a firm would be willing to accept and the price it actually receives

Producer surplus is

us sugar producers, us sugar consumers

Who gains and loses as a result of the United States not having a free trade regime for sugar? The winners are _ and the losers are_

sugar prices are high because the United States has placed a quota on imports of sugar

Why are sugar prices high in the us

consumer

_ surplus is the difference between the highest price of a consumer is willing to pay and the price the consumer actually pays

producer

_ surplus is the difference between the lowest price a firm would be willing to accept and the price it actually receives

decreases, increases

how does consumer surplus change as the equilibrium price of a good rises or falls? as the price of a good rises consumer surplus _ and as the price of a good falls consumer surplus _

increases,decreases

how does producer surplus change as the equilibrium price of a good rises or falls as the price of a good rises producer surplus _ and as the price of a good falls producer surplus _

it has undoubtedly shifted away from goods and services appealing to youthful buyers particularly youth female buyers

how has the one child policy changed the relative demand for goods and services in china

increase the demand for print books shifting the demand curve for print books to the right

if many book readers consider print books and digital books to be substitutes then an increase in the price of digital books will

A decrease in the price of baskets of traditional wings

imagine that the curves shown in the accompanying figure represent two demand curves for traditional wings further assume that wings are a normal good. A movement from point a to b on D1 is caused by

significantly to the right of the demand curve for baseballs signed by Ford

in order for the price of baseballs signed by mantle to be higher than the price of baseballs signed by Ford the demand curve for baseballs signed by mantle must be a downward sloping line that is

The supply of water is greater than the supply of diamonds

it is possible for the price of water to be much lower than the price of diamonds if which of the following is true