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Unit 5 and 6 AP Micro Review Flashcards | StudBud
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Unit 5 and 6 AP Micro Review
Unit 5 and 6 AP Micro Review
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1
Antitrust legislation is designed to do which of the following?
Increase Quantity
All of the above
Encourage Competition
Decrease Prices
2
A Gini Coefficient of . 2 means the income of a society is
Completely egaliitarian
Fairly totalitarian
Fairly egalitarian
Completely totalitarian
3
What increases when demand for a product increases
derived demand
supply
abatements
MRC
4
The best way to control a profit maximizing monopoly is to
Set price ceiling; subsidize if needed
Apply a per unit tax
Apply a lump sum tax
Take away a subsidy
5
If MP of the last unit of labor is 10 & the last unit of capital is 5; both have a factor price of $5. Managers should
Use equal of both
Use more labor
Use more capital
Not enough information
6
What will increase the demand for candy cane factory workers in a perfectly competitive labor market?
Immigrants arrive in the area
Worker productivity decreases
Robots become less expensive
Worker productivity increases
7
A tax on cigarettes are known as _______ taxes.
Excise
Regressive
Progressive
Proportional
8
What is not a shifter or labor supply curve?
Availability of complementary factors
Values change
Populaton increase
Rise in wages
9
What can government do to a natural monopoly that allows it to stay profitable?
Set a price ceiling
Subsidize it
Tax it
Nothing
10
The supply curve for perfectly competitive labor markets is
MRS
Unchanging
MFC
MPC
11
What type of externality is shown in the graph?
Negative Consumption Externality
Positive Production Externality
Positive Consumption Externality
Negative Production Externality
12
Why do monopsonies pay a lower wage than MRC? They
they are located in cities
raise wage to get people to work
they have a unique product
pay all the same wage
13
To find the MRP of a worker you have to
Subtract MRC by MFC
Find the derived demand
Get Total Product then divide by wage
Get MP then multiply by price
14
Which demand for labor will lessen the impact of a min wage law?
Inelastic
Unit elastic
None of the above
Elastic
15
A factory that pollutes the air without paying anything is a example of what type of externality?
Positive Producer
Negative Producer
Negative Consumer
Positive Consumer
16
The MEC is essentially the amount of the
Horizontal difference between MSC & MSB
Vertical difference between MPC & MSC
Horizontal difference between MPC & MPS
Horizontal difference between MPB & MSB
17
If you don't have to pay a price or worry someone is going to use the good instead, it is said to be a(n)
Private good
Inferior good
Consumer good
Public good
18
Abatements applied to reduce pollution include all but
Lawyers
Filters
Incinerators
Scrubbers
