HL Microeconomics (excluding Market Structures)

Question 1

What is the government tax revenue

Accepted Answer

Rectangle of (1.55-1.05)*(Qtax-0)

Question 2

If the last two workers added 20 additional units the MP is

Accepted Answer

10

Question 3

In what market structure does AR=P=MR? (HInt a flat horizontal line)

Accepted Answer

Perfect Competition

Question 4

Given Qs=6+2P and government gives a subsidy of 3 Dollars per unit. Give the new Supply curve

Accepted Answer

Qs=12+2P

Question 5

Diminishing Marginal Returns begins at point

Accepted Answer

A

Question 6

Given a subsidy what is the total cost of the subsidy

Accepted Answer

Blue, Red and Grey Area

Question 7

Which of these is incorrect

Accepted Answer

TC = TFC - TVC

Question 8

What is the revenue maximizing level of output

Accepted Answer

20,000

Question 9

What is the equation for Income Elasticity of Demand

Accepted Answer

% change in Quantity d of x / % change in income

Question 10

Given Qd=600-50P, and Qs=-200+150P what is the shortage at P = 2?

Accepted Answer

400

Question 11

What is the profit maximizing level of output

Accepted Answer

17,000

Question 12

What is the deadweight loss?

Accepted Answer

Triangle of (1.55-1.05) (Qtax-Qe)

Question 13

Given Q(d)= a-bP, what happens if B changes?

Accepted Answer

There is a rotation of the curve

Question 14

Given a subsidy what is the increase in producer surplus?

Accepted Answer

Blue Area

Question 15

Which of these is false?

Accepted Answer

MP crosses AP at MP's highest point

Question 16

Linear Demand Functions: If Q(d) = 600-5p, what is the Quantity demanded at P=4

Accepted Answer

400

Question 17

An example of a fixed cost is

Accepted Answer

Rent

Question 18

What type of market structure is this?

Accepted Answer

Monopoly, Monopolistic Competition, Oligopoly

Question 19

Given Q(s) = c+dP ; What is another way to describe C

Accepted Answer

The non price determinants of supply

Question 20

The increase to consumer surplus

Accepted Answer

Red Area

Question 21

The short run

Accepted Answer

There are fixed costs

Question 22

Given Qs=-200+150P; What would the new supply curve be with a $1 tax

Accepted Answer

Qs=-350+150P

Question 23

Given Q(s)=-200+150P, what price would give you a supply of 700?

Accepted Answer

6

Question 24

Given Qd=600-50P, and Qs=-200+150P what is the equilibrium quantity?

Accepted Answer

400

Question 25

Given Q(d)= a-bP, what happens if A changes?

Accepted Answer

There is a shift OF the curve

Question 26

In the market for cars, asymmetric information leads to all except

Accepted Answer

Overselling and buying of cars

Question 27

Given Qd=600-50P, and Qs=-200+150P what is the surplus at P=10

Accepted Answer

1200

Question 28

Explicit costs

Accepted Answer

Are the money payments a firm makes

Question 29

Situations where buyers and sellers do not have equal information

Accepted Answer

Asymmetric information

Question 30

Which of these is incorrect

Accepted Answer

ATC and AVC stay equal distance apart

Question 31

The P of a good went from 3 to 3.75 and the Q went from 10 to 8, what is the demand elasticity?

Accepted Answer

.8

Question 32

Given Qd=30-4P and Qs=6+2P; the gov't gives Suppliers a subsidy of $3 What is equilibrium P

Accepted Answer

3

Question 33

Given the linear supply function of Q(s)=c+dP how much would be produced if P=O

Accepted Answer

c

Question 34

Given Qs=c+dP, what happens if there is a change in P?

Accepted Answer

A shift ALONG the curve

Question 35

Given Qd=600-50P, and Qs=-200+150P what is the equilibrium price?

Accepted Answer

4

Question 36

What is the consumer burden?

Accepted Answer

Rectangle of (1.55-1.25)*(Qtax-0)

Question 37

In the long run ATC decreases (economies of scale) then increases (diseconomies of scale)

Accepted Answer

True

HL Microeconomics (excluding Market Structures)

Questions 37

HL Microeconomics (excluding Market Structures)

Questions 37