Table 5.3 \[\begin{array} { | l | c | } \hline{ \begin{array} { c } \text { The Waco Kid's } \\ \text { Cowboy Hats } \end{array} } & \begin{array} { c } \text { Marginal Cost } \\ \text { (dollars) } \end{array} \\ \hline \text { 1st hat } & 24 \\ \hline \text { 2nd hat } & 30 \\ \hline \text { 3rd hat } & 38 \\ \hline \text { 4th hat } & 46 \\ \hline \end{array}\] -Refer to Table 5.3.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specialises in producing fancy dress costumes.If the market price of cowboy hats is $50,producer surplus is __________.

A) $0 B) $4 C) $62 D) $138 A) $0 B) $4 C) $62 D) $138

Table 5.2 \[\begin{array} { | l | c | } \hline { \text { Consumer } } & \text { Willingness to Pay } \\ \hline \text { Anya } & \$ 24 \\ \hline \text { Easil } & \$ 20 \\ \hline \text { Celeste } & \$ 15 \\ \hline \text { Dralon } & \$ 12 \\ \hline \text { Esther } & \$ 7 \\ \hline \end{array}\] -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $10,___________.

A) everyone will buy a ticket except for Esther B) only Anya and Basil will buy tickets C) Celeste's consumer surplus is $25 D) the total consumer surplus from the purchase of tickets will be $61 A) everyone will buy a ticket except for Esther B) only Anya and Basil will buy tickets C) Celeste's consumer surplus is $25 D) the total consumer surplus from the purchase of tickets will be $61

Table 5.2 \[\begin{array} { | l | c | } \hline { \text { Consumer } } & \text { Willingness to Pay } \\ \hline \text { Anya } & \$ 24 \\ \hline \text { Easil } & \$ 20 \\ \hline \text { Celeste } & \$ 15 \\ \hline \text { Dralon } & \$ 12 \\ \hline \text { Esther } & \$ 7 \\ \hline \end{array}\] -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket is $25,___________.

A) everyone will buy a ticket B) consumer surplus will be maximised C) Anya's consumer surplus is $1 D) no one will buy a ticket A) everyone will buy a ticket B) consumer surplus will be maximised C) Anya's consumer surplus is $1 D) no one will buy a ticket

Table 5.4 \[\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Hourly Wage } \\ \text { (dollars) } \end{array} & \begin{array} { c } \text { Quantity of } \\ \text { Labour } \\ \text { Supplied } \end{array} & \begin{array} { c } \text { Quantity of } \\ \text { Labour } \\ \text { Demanded } \end{array} \\ \hline 7.50 & 530000 & 650000 \\ \hline 8.50 & 550000 & 630000 \\ \hline 9.50 & 570000 & 610000 \\ \hline 10.50 & 590000 & 590000 \\ \hline 11.50 & 610000 & 570000 \\ \hline 12.50 & 630000 & 550000 \\ \hline \end{array}\] Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5.4.If a minimum wage of $11.50 is mandated,there will be a _________.

A) shortage of 20 000 units of labour B) surplus of 20 000 units of labour C) shortage of 40 000 units of labour D) surplus of 40 000 units of labour A) shortage of 20 000 units of labour B) surplus of 20 000 units of labour C) shortage of 40 000 units of labour D) surplus of 40 000 units of labour

Table 5.3 \[\begin{array} { | l | c | } \hline{ \begin{array} { c } \text { The Waco Kid's } \\ \text { Cowboy Hats } \end{array} } & \begin{array} { c } \text { Marginal Cost } \\ \text { (dollars) } \end{array} \\ \hline \text { 1st hat } & 24 \\ \hline \text { 2nd hat } & 30 \\ \hline \text { 3rd hat } & 38 \\ \hline \text { 4th hat } & 46 \\ \hline \end{array}\] -Refer to Table 5.3.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specialises in producing fancy dress costumes.If the price of cowboy hats decreases from $38 to $30,__________.

A) consumer surplus will rise by $6 B) the marginal cost of producing the third cowboy hat will fall to $30 C) producer surplus will fall from $22 to $6 D) producer surplus will rise from $8 to $24 A) consumer surplus will rise by $6 B) the marginal cost of producing the third cowboy hat will fall to $30 C) producer surplus will fall from $22 to $6 D) producer surplus will rise from $8 to $24

Exam 5: Economic Efficiency,government Price Setting and Taxes

Figure 5.7 Figure 5.7 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 5.7.How much of the tax is paid by producers?

(Multiple Choice)

4.8/5

(71)

Question 21

Economists refer a market where buying and selling goods and services that are illegal as ________.

(Multiple Choice)

4.9/5

(78)

Question 22

The difference between the and the from the sale of a product is called producer surplus.

(Multiple Choice)

4.8/5

(82)

Question 23

What does a demand curve show?

(Multiple Choice)

4.9/5

(83)

Question 24

Table 5.3 The Waco Kid's Cowboy Hats Marginal Cost (dollars) 1st hat 24 2nd hat 30 3rd hat 38 4th hat 46 -Refer to Table 5.3.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specialises in producing fancy dress costumes.If the market price of cowboy hats is $50,producer surplus is __________.

(Multiple Choice)

4.8/5

(77)

Question 25

Lucinda buys a new GPS system for $250.She receives consumer surplus of $75 from the purchase.How much does Lucinda value her GPS system?

(Multiple Choice)

4.9/5

(88)

Question 26

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $10,___________.

(Multiple Choice)

5.0/5

(75)

Question 27

Which of the following statements is true?

(Multiple Choice)

5.0/5

(80)

Question 28

Suppose an excise tax of $1 is imposed on every case of beer sold,and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

(Multiple Choice)

4.8/5

(100)

Question 29

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket is $25,___________.

(Multiple Choice)

4.9/5

(77)

Question 30

The graph below represents the market for walnuts.Identify the values of the marginal benefit and the marginal cost at the output levels of 2 000 metrics,4 000 metrics,and 6 000 metrics.At each of these output levels,state whether output is inefficiently high,inefficiently low,or economically efficient. __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

4.9/5

(87)

Question 31

Shortage means the same thing as scarcity.

(True/False)

4.8/5

(73)

Question 32

Figure 5.5 Figure 5.5 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1 000 per month. -Refer to Figure 5.5.With rent control,the quantity supplied is 200 apartments.Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get.What is the highest rent they can get per month?

(Multiple Choice)

4.8/5

(88)

Question 33

In a competitive market,the demand curve shows the received by consumers,and the supply curve shows the .

(Multiple Choice)

4.8/5

(84)

Question 34

Dead-weight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

(True/False)

4.7/5

(66)

Question 35

Table 5.4 Hourly Wage (dollars) Quantity of Labour Supplied Quantity of Labour Demanded 7.50 530000 650000 8.50 550000 630000 9.50 570000 610000 10.50 590000 590000 11.50 610000 570000 12.50 630000 550000 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley. -Refer to Table 5.4.If a minimum wage of $11.50 is mandated,there will be a _________.

(Multiple Choice)

4.8/5

(83)

Question 36

What is economic surplus? When is economic surplus at a maximum? __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

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(93)

Question 37

Figure 5.6 -Refer to Figure 5.6 which shows the market for vitamins.Suppose the government imposes a price ceiling of P_v.How will the price ceiling affect the quantity supplied,quantity demanded,and quantity exchanged? __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

4.8/5

(89)

Question 38

Table 5.3 The Waco Kid's Cowboy Hats Marginal Cost (dollars) 1st hat 24 2nd hat 30 3rd hat 38 4th hat 46 -Refer to Table 5.3.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specialises in producing fancy dress costumes.If the price of cowboy hats decreases from $38 to $30,__________.

(Multiple Choice)

4.9/5

(86)

Question 39

If marginal benefit is greater than marginal cost,output is inefficiently high.

(True/False)

4.8/5

(72)

Question 40

Figure 5.7 Figure 5.7 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 5.7.How much of the tax is paid by producers?

Economists refer a market where buying and selling goods and services that are illegal as ________.

The difference between the and the from the sale of a product is called producer surplus.

What does a demand curve show?

Lucinda buys a new GPS system for $250.She receives consumer surplus of $75 from the purchase.How much does Lucinda value her GPS system?

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $10,___________.

Which of the following statements is true?

Suppose an excise tax of $1 is imposed on every case of beer sold,and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket is $25,___________.

Shortage means the same thing as scarcity.

In a competitive market,the demand curve shows the received by consumers,and the supply curve shows the .

Dead-weight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

What is economic surplus? When is economic surplus at a maximum? __________________________________________________________________________________________________________________________________________________________________________________________

If marginal benefit is greater than marginal cost,output is inefficiently high.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Exam 5: Economic Efficiency,government Price Setting and Taxes

Figure 5.7 Figure 5.7 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 5.7.How much of the tax is paid by producers?

Economists refer a market where buying and selling goods and services that are illegal as ________.

The difference between the ________ and the ________ from the sale of a product is called producer surplus.

What does a demand curve show?

Lucinda buys a new GPS system for $250.She receives consumer surplus of $75 from the purchase.How much does Lucinda value her GPS system?

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $10,___________.

Which of the following statements is true?

Suppose an excise tax of $1 is imposed on every case of beer sold,and sellers are responsible for paying this tax.How would the imposition of the tax be illustrated in a graph?

Table 5.2 Consumer Willingness to Pay Anya \ 24 Easil \ 20 Celeste \ 15 Dralon \ 12 Esther \ 7 -Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket is $25,___________.

Shortage means the same thing as scarcity.

In a competitive market,the demand curve shows the ________ received by consumers,and the supply curve shows the ________.

Dead-weight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

What is economic surplus? When is economic surplus at a maximum? __________________________________________________________________________________________________________________________________________________________________________________________

If marginal benefit is greater than marginal cost,output is inefficiently high.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

The difference between the and the from the sale of a product is called producer surplus.

In a competitive market,the demand curve shows the received by consumers,and the supply curve shows the .