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EC120 Test 2 Review Quiz - g Increase in output obtained...

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EC120 Test 2 Review Match the following: 1. Coase theorem 2. If the domestic price of good in country A is less than the world price then 3. Externalities cause markets to 4. Government impose binding price floor higher than the equilibrium price 5. Size of the deadweight loss 6. Pigovian tax 7. Marginal Product of labor 8. Producers surplus 9. In competitive market 10. Monopolists marginal revenue is less than its price 11. Welfare economics 12. Social cost 13. Consumer surplus 14. Tax is imposed on a market with inelastic supply and elastic demand? 15. Competitive firms 16. What happens if there is a negative externality in the market? 17. Natural Monopoly 18. If marginal cost is rising: a. Fail to allocate recourses sufficiently b. Overproduction will occur c. Everyone is better off because interested parties can reach to an outcome d. Surplus of goods e. Sellers bears most of the burden of the tax f. Greater the elasticity of supply and demand, greater the deadweight loss
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Unformatted text preview: g. Increase in output obtained from one unit increase in labor h. Average cost must be falling i. Nor buyer or seller influence the price of the product j. Average revenue must equal marginal revenue k. Average cost must me increasing l. Large number of firms will lead to higher average cost m. The price charged on all units must decrease in order to sell additional units of good. n. The study of how the allocation of resources affects economic wellbeing. o. Value to buyers – Amount paid by buyers p. Amount received by sellers – Cost to sellers q. Country A would become the exporter of that good r. Environment Canada levy tax on steel factory of $100,000 for each tonne of glob it emits s. Includes the private cost of suppliers plus the external cost. t. Shortage of goods u. Buyers bear most of the tax...
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