Econ Final Exam 2

the same amount of revenue is raised in both countries, but the cost to taxpayers is smaller in country A than in Country B

Country A's tax system is more efficient than Country B's tax system if

free riding

Even though he is not a union member and he does not have to pay union dues, Pete receives all the benefits that the union has negotiated. Pete's behavior is an example of

$14

Kelly is willing to pay $5.20 for a gallon of gasoline. The price of gasoline at her local gas station is $3.80. If she purchases ten gallons of gas, then Kelly's consumer surplus is

benefits to sellers of participating in a market

Producer surplus measures the

$625

Refer to figure 7-11. if the supply curve is S', the demand curve is D, and the equilibrium price is $150, what is the producer surplus

$41

Refer to table 7-1. If the price of the product is $122, then the total consumer surplus is

producer surplus increases for producers of coats in Iceland

Suppose Iceland goes from being an isolated country to being an exporter of coats. As a result,

The response of buyers and seller to a change in the price of bananas is strong

Suppose a tax is imposed on bananas. in which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount?

$20 and tax revenues increase by $20, so there is no DWL

Suppose that if the government taxes tickets at $5 each, the price will rise to $55. A consequence of the tax is that consumer surplus shrinks by

The DWL of the tax is $12.50

The effective price paid by buyers increases form $1.50 to $1.90 and the effective price received by sellers falls from 1.50 to 1.40. The governments tax revenue amounts to $475 per month. Which of the following statements is correct?

tax revenue

The government's benefit from a tax can be measured by

$33.60

Thus, when the 59th unit of the good is produced and consumed, social well-being increases by

regardless of how the tax is levied

When a tax is levied on a good, the buyers and sellers of the good share the burden,

protect the interests of bystanders

When the government intervenes in markets with externalities, it does so in order to

a tax on the wages that a firm pays its workers

Which of the following is an example of a payroll tax?

common resource when it is congested, but it is a public good when it is not congested

a city street is

Higher than that country's domestic price without trade

a country has a comparative advantage in a product if the world price is

people can be prevented from using it

a good is excludable if

not excludable, people have an incentive to be free riders

because public goods are

common resources and private goods

goods that are rival in consumption include both

$8

refer to figure 10-2. The private value of the 200th unit of plastic exceeds the social cost of the 200th unit of plastic by

it takes into account the external costs imposed on society by the concert

refer to figure 10-3. the social cost curve is above the supply curve because

common resources

refer to figure 11-1. The box labeled C represents

$100

refer to figure 7-14. If the government imposes a price ceiling of $50 in this market, then the new producer surplus will be

tax revenue

refer to figure 8-1. suppose the government imposes a tax of P'-P'". The area measured by K+L represents

supply 2 and demand 2

refer to figure 8-14. which of the following combinations will maximize the deadweight loss from a tax?

increase the deadweight loss of the tax and decrease tax revenue

refer to figure 8-23. If the economy is at point B on the curve, then an increase in the tax rate will

P3-P2

refer to figure 8-3. The per unit burden of tax on buyers is

export 22 units of coffee

refer to figure 9-1. With trade, Guatemala will

$845

refer to figure 9-2. Without trade, producer surplus is

3 units

refer to table 10-1. What is the equilibrium quantity of output in the market?

2 units

refer to table 10-1. What is the socially-optimal quantity of output in this market?

$87

refer to table 10-5. If the government wanted to eliminate exactly 11 units of pollution, which of the following fees per unit of pollution would achieve that goal?

$83

refer to table 10-5. If the government wanted to reduce pollution form 16 units to 6 units, which of the following fees per unit of pollution would achieve that goal?

$18

refer to table 11-3. What is the value of the 99th unit of police protection in Safetyville?

slightly more than $50

refer to table 7-4. If you have a ticket that you sell to the group in an auction, what will be the selling price?

willingness to pay

suppose larry, moe, and curly are bidding in an auction for a mint-condition video of charlie chaplin's first movie. each has in mind a maximum amount that he will bid. the maximum is called.