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Demand side Microeconomics: Unit 3 Section 9 Flashcards | StudBud
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Demand side Microeconomics: Unit 3 Section 9
Demand side Microeconomics: Unit 3 Section 9
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#Economics #Bellathecat #Bella #MrReynolds #SaintJoeHigh #APMicroeconomics
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Questions
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Answers
1
____________ Tax takes a larger percentage from high-income groups.
Alcohol
Sin
Progressive
Proportional
2
A perfectly inelastic supply curve is
Vertical
Horizontal
Positively sloped
Negatively sloped
3
When the price elasticity of demand for a good equals zero;
prices rises and demand is inelastic
the demand curve will be horizontal.
the slope of the demand curve will be zero.
the demand curve will be vertical.
4
Goods that people cannot do without have:
an elastic demand.
a unit elastic demand.
an inelastic demand.
perfectly inelastic
5
Many consider sales tax to be ____ , as it is a larger burden on income for low-income earners.
progressive
payroll
regressive
proportional
6
Individual choice = MU
good
/ P
good
is the economic equation for:
budget constraint
marginal utility per individual
principle of diminishing marginal utility
marginal utility per dollar
7
The consumption of most goods and services is subject to:
an upward sloping marginal utility curve
the law of supply
minimization of utility
law of diminishing marginal utility
8
A ___________ is an upper limit on the quantity of some good that can be bought or sold
license
demand curve
elasticity
quota
9
Purchasing power is best defined as the:
amount of a good or service that consumers want to buy
amount of income earned by individuals
quantity demanded of a given good or service.
ability of people to buy goods and services
10
_______________ are required payments to the government
User fees
licenses
Revenues
Taxes
11
The U.S.A operates off of this type of tax system.
END THE FED.
Regressive
Progressive
Proportional
12
consumers respond to a price increase by decreasing the quantity demand by the same % demand is
unit elastic.
elastic.
inelastic.
negative elastic.
13
A government-imposed price control or limit on how high a price is charged for a product is a _
A tax
A price ceiling
A price floor
A quota
14
The ___ of a tax are the resources used by gov. to collect the tax, and by taxpayers to pay it
tax utility
opportunity cost
administrative costs
incidence
15
____ is a variation on a sales tax that applies more narrowly to specific goods, like gasoline.
sin tax
payroll tax
excise tax
property tax
16
excess demand is created When the ________ is set below the market price.
Price ceilings
equilibrium price
quota licenses
Price floors
17
When consumers are very sensitive to the price demand is:
unit elastic.
socialism
elastic.
inelastic.
18
A _______________ gives its owner the right to supply a good.
demand curve
total utility
quota
license
19
The degree to which a demand or supply curve reacts to a change in price is the curve's _______
elasticity
demand
payroll tax
supply
20
The model of supply and demand _____________________ .
Is only valuable for depicting demand and supply schedules
Shows us only where equilibrium lies in a market
Tells us nothing about consumer behavior
Is a tool in learning about consumer and producer surplus
21
The Trump tax bill effective Jan. 1 now has the top tax bracket of $500,001 at this percentage:
10%
37%
24%
39.6%
22
If goods A and B are substitutes, a decrease in the price of good B will:
decrease the demand for good. B.
increase the demand for good C.
increase the demand for good A.
decrease the demand for good A.
23
substation effect: how are consumers likely to react if the price of movie tickets increases?
will attend more movies to try to increase quantity demand
They will attend the same number of movies.
They will purchase more lower-priced DVD movie rentals.
They will purchase fewer snacks when attending movies.
24
The government imposes taxes to discourage undesired behavior. These types of taxes are:
sales taxes
sin taxes
excise taxes
payroll taxes
25
The____________ is a specific percentage of the tax base that is paid in taxes.
tax return
payroll tax
excise tax
tax rate
26
wealthy people purchase luxury goods as a signal that they have a high social standing known as
internal revenue service
luxury utility
conspicuous consumption.
the substitution effect
27
___________ demand is insensitive to changes in price or income.
inelastic
elastic
the law of supply
total utility
