Exam 4: Economic Efficiency, Government Price Setting, and Taxes

Figure 4-1 Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1.What is the total amount that Arnold is willing to pay for 2 burritos?

Figure 4-2 -Refer to Figure 4-2.What area represents the increase in producer surplus when the market price rises from P₁ to P₂?

Rent control is an example of

A tax that imposes a small excess burden relative to the tax revenue that it raises is

Which of the following is not a consequence of minimum wage laws?

Figure 4-5 Figure 4-5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month. -Refer to Figure 4-5.Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments.What is the value of consumer surplus after the imposition of the price floor?

Economic surplus

When Congress passed a law that imposed a tax designed to fund its Social Security and Medicare programs, it wanted employers and workers to share the burden of the tax equally.Most economists who have studied the incidence of the tax have concluded