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Dr G's Microeconomics: Chapter 4 Flashcards | StudBud
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Dr G's Microeconomics: Chapter 4
Dr G's Microeconomics: Chapter 4
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#microeconomics #priceceiling #pricefloor
Flashcards
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Questions
14
Answers
1
Precisely what does consumer surplus measure?
efficiency of competitive markets.
total benefit to consumers from participating in the market.
net benefit to consumers from participating in the market.
marginal cost of consumption.
2
When market price is $2.00, how much is the producer surplus from selling the 40th cup?
$0.20
$36.00
$2.00
$1.80
3
What area corresponds to the excess burden (or deadweight loss) from the tax?
EBDF
EBACG
ABC
EBCG
4
Assume a competitive market. Which of the following does not exist when the price is $2.00?
Economic efficiency.
A deadweight loss.
Competitive equilibrium.
Economic surplus.
5
Which of the following price controls is said to be binding?
Neither price control above is binding.
Both price controls above are binding.
A price ceiling set above the equilibrium price.
A price floor set above the equilibrium price.
6
In this figure, how much of the gas tax do consumers pay?
10 cents per gallon.
None of the above.
8 cents per gallon.
2 cents per gallon.
7
When the government imposes price floors or price ceilings, which of the following occurs?
Some people lose.
All of these mentioned happen.
There is a loss of economic efficiency.
Some people win.
8
What does the sum of consumer surplus and producer surplus equal?
Competitive equilibrium.
Economic deficiency.
A deadweight loss.
Economic surplus.
9
Consider the cable tv market:
$208 + $81
$81 + $127
$208 – $81
$81
10
The term tax incidence refers to:
The amount of revenue collected by the government.
The actual division of the burden of a tax.
The actual versus the desired impact of a tax burden.
The analysis of who loses as a result of a tax.
11
After the rent control is imposed, which area represents a deadweight loss?
B + C
A + B + C
An area other than A, B, or C.
A
12
Government imposes price ceiling or price floor the amount of economic surplus in a market is
Reduced.
Increased.
Eliminated.
Maximized.
13
The graph shows the market demand for satellite TV service.
Those willing to pay more than $81.
Those willing to pay exactly $81.
Those willing to pay something less than $81.
All of the above.
14
After a price of $3.50 is imposed by government, what meaning do we give to area A?
additional CS that goes to existing consumers
CS transferred to producers.
surplus of wheat
deadweight loss.
