Level 3 Economics- Market efficiency

Question 1

Letter(s) representing the gain in producer surplus from a subsidy

Accepted Answer

B and C

Question 2

Letter(s) representing the gain in efficiency from the removal of a tariff

Accepted Answer

D and F

Question 3

Letter(s) representing the deadweight loss that results from a subsidy

Accepted Answer

G

Question 4

Loss of welfare not offset by a gain to another group

Accepted Answer

Deadweight loss

Question 5

Effects of a price maximum/ceiling

Accepted Answer

Price down; Qs down

Question 6

Where quantity demanded is greater than quantity supplied

Accepted Answer

Shortage, Excess demand

Question 7

Applying a quota will have the following effects...

Accepted Answer

An increase in market price and a decrease in market quantity

Question 8

Where combined consumer and producer surplus is maximised

Accepted Answer

Allocative efficiency

Question 9

Total output of all firms producing the same good or service

Accepted Answer

Market supply

Question 10

Which of the following results from a minimum price control?

Accepted Answer

Surplus

Question 11

A place or situation where buyers and sellers exchange

Accepted Answer

Market

Question 12

Where the price consumers are willing to pay is above the market price

Accepted Answer

Consumer surplus

Question 13

Which of the following is not a factor that will shift the whole supply curve?

Accepted Answer

Tastes

Question 14

A payment by firms to government on each unit produced

Accepted Answer

Indirect tax

Question 15

Which of the following is not a factor that will shift the whole demand curve?

Accepted Answer

Costs

Questions 15