Which of these is LEAST likely to be a negative externality?

Using the trash bin more than recycling

How do you calculate price elasticity of demand and supply?

(% change in quantity)/(% change in price)

What is marginal cost?

The cost of one additional unit

How do you measure producer surplus?

Area above supply curve but below market price

What is the tragedy of the commons?

Overuse of a shared resource leads to negative externalities

What is consumer surplus?

Money saved on what consumers were willing to buy

What is deadweight loss?

Total surplus lost from taxation or price controls

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AcDec Micro-economics

20 termsStudBud Administration57 plays

Section II

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Questions 20

Answers

1
How do you calculate total revenue?
Quantity*Price
Quantity/Price
Money earned-total costs
Price/Quantity
2
If a new technology helps on the assembly line, what happens to the supply curve?
Decreases along the curve
Curve shifts to the right
Increases along the curve
Curve shifts to the left
3
Which of these DOES NOT constitute a perfectly competitive market?
Highly standardized goods
Differentiating goods
Large number of buyers and sellers
All participants are well informed
4
Which of these is LEAST likely to be a negative externality?
Playing loud music in public
Smoking
Driving a car
Using the trash bin more than recycling
5
What is a public good?
High rivalry, high excludability
Low rivalry, high excludability
Low rivalry, low excludability
High rivalry, low excludability
6
How do you calculate price elasticity of demand and supply?
(% change in quantity)/(% change in price)
(% change in price)/(% change in quantity)
7
What is marginal cost?
Cost to the consumer of buying a product
The cost per unit produced
The costs that stay the same
The cost of one additional unit
8
How do you measure producer surplus?
Area below supply curve but above market price
Area below supply curve but above demand curve
Area above supply curve but below market price
Area above supply curve but below demand curve
9
What is the tragedy of the commons?
Individuals cannot resolve problems unless they negotiate
Nothing is efficient unless everything is used
Entrepreneurs will use resources inefficiently to innovate
Overuse of a shared resource leads to negative externalities
10
Which of these is MOST likely a complement for bread?
Hot dog buns
Jam
Candy
Croissants
11
What is consumer surplus?
Surplus from suppliers bought for a lower price than market
Money saved by consumers in recession
Overconsumption of a certain good
Money saved on what consumers were willing to buy
12
Which of these DOES NOT cause a shift in the supply curve?
Tastes
Number of sellers
Expectations
Input prices
13
What is deadweight loss?
Total surplus lost from inefficient use of resources
Total surplus lost from taxation or price controls
Consumer surplus lost from taxation
Producer surplus lost from inefficient use of resources
14
What is the price elasticity of demand of this graph?
Inelastic
Perfectly elastic
Perfectly inelastic
Unit elastic
15
Which one of these DOES NOT cause a shift in the demand curve?
Tastes
Technology
Income
Expectations
16
Which of these is NOT a rival good?
Gasoline
Movie
Pizza
City streets in a congested area
17
When was the Sherman Anti-Trust Act introduced?
1910
1880
1900
1890
18
What is the effect of a price ceiling?
Shortage
Surplus
19
Which of these causes a change in price elasticity of demand?
Complements
Substitutes
Income
Expectations
20
Which of these is NOT a cause of monopolies?
Large fixed costs
Government
Differentiated products
Ownership of a key resource

AcDec Micro-economics Flashcards | StudBud