study guide for exam 3

study guide for exam 3 - Chapter 7 1. What is welfare...

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Chapter 7 1. What is welfare economics? 2. What is willingness to pay and what is consumer surplus? Which area in a demand and supply graph represents the consumer surplus? 3. What is cost? And what is producer surplus? Which area in a demand and supply graph represents the producer surplus? 4. What is total surplus? 5. What is efficiency and what is equity? 6. What is the relationship between market equilibrium and market efficiency? 7. What are market failures? What is the relationship between market failure and market efficiency? Chapter 8 1. What are the effects of a tax on the market equilibrium price and quantity? 2. What are the welfare effects of a tax on the market? What are the consumer surplus, producer surplus and total surplus before taxes and after taxes? How to compute the tax revenue when we have a tax? 3. What is deadweight loss? 4. What are the relationships between the deadweight loss and the elasticities of the demand and supply curves? 5.
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This note was uploaded on 10/22/2009 for the course ARE 201 taught by Professor Eryuruk during the Fall '08 term at N.C. State.

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study guide for exam 3 - Chapter 7 1. What is welfare...

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