Week 2 quiz

Week 2 quiz - Relatively Elastic Relatively Inelastic...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 2: Chapters 5-8 - Weekly Quiz Help 1. The price consumers are willing to pay for a product minus the price they actually pay is called: (Points: 10) consumer surplus producer surplus externality market efficiency 2. A (hypothetical) benevolent social planner whose goal is to allocate resources with the greatest efficiency should: (Points: 10) minimize total cost maximize income equality maximize total surplus maximize welfare programs 3. The fall in total surplus that results from a market distortion, such as a tax is called: (Points: 10) surplus shortage deadweight loss surplus scarcity tax revenue 4. According to the Laffer Curve, lower tax rates might lead to: (Points: 10) Higher consumer surplus Higher market efficiency Higher government revenues Higher deadweight loss 5. One benefit of international trade is: (Points: 10) Increased variety of goods Lower costs through economies of scale
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Increased competition All of the above can be benefits 6. A relatively horizontal (but not completely flat) demand curve is: (Points: 10)
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Relatively Elastic Relatively Inelastic Unitary Elastic Infinitely Inelastic 7. In terms of elasticity of demand, necessities are: (Points: 10) Relatively elastic Unitary elastic Relatively Inelastic Infinitely elastic 8. Rent control is an example of a price ____ (Points: 10) ceiling floor roof ground 9. Consumer surplus ______ (Points: 10) is the same for all individuals in a market is equal to the price consumers are willing to pay changes along a downward-sloping demand curve is equal to the cost suppliers pay for their resources 10. If the price of oil increases strongly and steadily, what is expected to occur to the elasticiy of supply and demand in the long run? (Points: 10) both will stay constant demand will be more elastic while supply will not be affected demand will not be affected while supply will be more elastic both supply and demand will become more elastic...
View Full Document

Page1 / 2

Week 2 quiz - Relatively Elastic Relatively Inelastic...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online