stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
IB Micro Final Review Flashcards | StudBud
Explore
/
IB Micro Final Review
IB Micro Final Review
23 terms
·
StudBud Administration
·
67 plays
Imported from external platform
Flashcards
23 cards
F
Practice quiz
P
Host live
L
Questions
23
Answers
1
The following statement is an example of __________ analysis. The stock market declined 4%
Positive
Normative
2
The amount of the tax is:
2
5
19
4
3
Why are public goods undersupplied?
Free riders cannot be prevented from getting the benefit.
marginal benefits are less than marginal costs
They have negative externalities
They generate too much money
4
If a market good produces a positive externality, then:
social marginal benefit exceeds the private marginal costs
Society's marginal cost will be > society's marginal benefit
it will be provided at the optimal level in the free market
It will be overproduced in the market
5
The basic problem that all economic systems try to solve is:
how best to allocate scarce resources.
How to increase the supply of private goods.
increase the amount of equity of wealth.
How to make some people stop asking so many questions.
6
If the price is increased for product x, and revenue is unchanged, it is:
elastic
inelastic
unit elastic
7
If the price is increased for product x, and revenue increases, it is:
inelastic
unit elastic
elastic
8
What is the equilibrium price and quantity?
4,000; 120
120; 4,000
80; 4,000
60; 2,000
9
To increase allocative efficiency, negative externalities can be _____ and positive ones _____.
price ceilings; price floors
regulated; taxed
subsidized; regulated
taxed; subsidized
10
At P3 there would be a
market efficiency
shortage
equilibrium
surplus
11
An efficient use of resources on the PPC would be located:
Outside the curve
Inside the curve
In Diego's Hello Kitty lunch box
On the curve
12
Since the marginal social cost curve is above the marginal private cost:
Private costs are less than social costs for any quantity
the quantity produced is at the socially optimal level
production of the good produces a positive externality
the free market will produce too much of the product
13
Which would be the BEST example of a positive externality.
plants a tree that provides shade on your patio
Your neighbor feeds stray cats in the yard
She trades you her pet snake for your cousin
Neighbor leaves a refrigerator in the yard for kids to play
14
The following statement is an example of __________ analysis. Taxation lowers economic growth
Positive
Normative
15
If the supply of a substitute good decreases, the demand for the other good will:
have lower prices
remain constant
decrease
increase
16
Which pair would most likely have a low positive cross-price elasticity?
hotdogs and hotdog buns
rabbits and skittles
apples and mangos
Basketballs and basketball shoes
17
If the government established a price ceiling of 0.75, the result would be a
surplus
market solution
shortage
socially optimal output
18
The socially optimal output is _____ and the per unit tax should be _____.
2; 50
4; 50
4; 100
2; 100
19
The price paid by consumers would be _________ and the net price received by producers ________
28; 30
20; 19
30; 40
24; 19
20
Total satisfaction _______ and then eventually __________ as additional units are consumed
increases; decreases
decreases; increases
decreases; remains flat
increases; levels off
21
If the price is increased for product x, and revenue decreases, it is:
inelastic
elastic
unit elastic
22
Opportunity costs are
The cost of giving up one thing to get something else.
measured in US dollars
Money needed by entrepreneurs
the price Mariano would pay
23
I make washers and dishwashers. The price of washers increases. What happens to dishwashers?
Price increases, quantity increases
Price increases, quantity decreases
Price decreases, quantity decreases
Price decreases, quantity increases
