201-tutorial-4 - Econ 201 Tutorial #4 Date: Week of Feb....

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Econ 201 Tutorial #4 Date: Week of Feb. 6-12 Coverage: Mainly Chapter 5 Welfare Economics, Externalities and Non-Classical Markets I. Multiple Choice Questions: 1. The sum of the economic surpluses accruing to buyers and sellers is: A) producer surplus. B) deadweight loss. C) total economics surplus. D) conspicuous consumption. 2. Which of the following is not required for the market equilibrium to be efficient? A) Consumers and producers must be well informed. B) The market must be perfectly competitive. C) The equilibrium price must be considered fair and just. D) The supply curve must include all the costs of production. 3. An effective price ceiling will cause: A) producer surplus to fall. B) total economic surplus to rise. C) quantity supplied to exceed quantity demanded. D) quantity supplied to increase. 4. A tax of $1 on each unit a producer sells will: A) shift supply to the right. B) decrease quantity supplied. C) shift supply to the left. D) increase quantity supplied. 5. Using a supply and demand diagram of your own, if a per unit tax is imposed, the more elastic demand is, the: A) less likely the deadweight loss will be affected. B)
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This note was uploaded on 02/09/2012 for the course ECON 201 taught by Professor Curtis during the Spring '09 term at Concordia Canada.

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201-tutorial-4 - Econ 201 Tutorial #4 Date: Week of Feb....

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