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.Suppose that the quantity of labour demanded decreases by 80 000 at each wage level.What are the new free-market equilibrium hourly wage and the new equilibrium quantity of labour?

A) W = $8.50; Q = 550 000 B) W = $12.50; Q = 630 000 C) W = $9.50; Q = 570 000 D) W = $9.50; Q = 590 000 A) W = $8.50; Q = 550 000 B) W = $12.50; Q = 630 000 C) W = $9.50; Q = 570 000 D) W = $9.50; Q = 590 000

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 $35,The Waco Kid will produce ________.

A) 1 hat B) 2 hats C) 3 hats D) 4 hats A) 1 hat B) 2 hats C) 3 hats D) 4 hats

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,how many hats will be produced?

A) 0 B) 1 C) 2 D) 4 A) 0 B) 1 C) 2 D) 4

Figure 5.3 Figure 5.3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40S1U1B1 S1U1B0in order to raise the price to $18. -Refer to Figure 5.3.At the equilibrium price of $15,consumers are willing to buy 80 metrics of tiger shrimp.Is this an economically efficient quantity?

A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit. B) Yes, because marginal cost is zero at the 80th unit. C) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost. D) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit. A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit. B) Yes, because marginal cost is zero at the 80th unit. C) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost. D) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit.

Table 5.1 \[\begin{array} { | l | c | } \hline { \text { Consumer } } & \text { Willingness to Pay (dollars) } \\ \hline \text { Tom } & 40 \\ \hline \text { Dick } & 30 \\ \hline \text { Harriet } & 25 \\ \hline \end{array}\] -Refer to Table 5.1.The table above lists the highest prices three consumers,Tom,Dick,and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars,__________.

A) Tom will buy two shirts, Dick will buy one shirt, and Harriet will buy no shirts B) Tom will receive $12 of consumer surplus from buying one shirt C) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts. D) Harriet will receive $25 of consumer surplus since she will buy no shirts A) Tom will buy two shirts, Dick will buy one shirt, and Harriet will buy no shirts B) Tom will receive $12 of consumer surplus from buying one shirt C) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts. D) Harriet will receive $25 of consumer surplus since she will buy no shirts

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.Suppose that the quantity of labour supplied increases by 40 000 at each wage level.What are the new free-market equilibrium hourly wage and the new equilibrium quantity of labour?

A) W = $8.50; Q = 550 000 B) W = $12.50; Q = 630 000 C) W = $9.50; Q = 610 000 D) W = $11.50; Q = 610 000 A) W = $8.50; Q = 550 000 B) W = $12.50; Q = 630 000 C) W = $9.50; Q = 610 000 D) W = $11.50; Q = 610 000

Exam 5: Economic Efficiency,government Price Setting and Taxes

Suppose the demand curve for a product is vertical and the supply curve is upward sloping.If a unit tax is imposed in the market for this product,_________.

(Multiple Choice)

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Question 121

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.Suppose that the quantity of labour demanded decreases by 80 000 at each wage level.What are the new free-market equilibrium hourly wage and the new equilibrium quantity of labour?

(Multiple Choice)

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Question 122

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 $35,The Waco Kid will produce ________.

(Multiple Choice)

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Question 123

What curve shows the marginal cost of producing one more unit of a good or service?

(Multiple Choice)

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Question 124

The government proposes a tax on imported champagne.Buyers will bear the entire burden of the tax if the _________.

(Multiple Choice)

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Question 125

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,how many hats will be produced?

(Multiple Choice)

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Question 126

In a city with rent-controlled apartments,all of the following are true except:

(Multiple Choice)

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Question 127

Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos. -Refer to Figure 5.1.If the market price is $3.00,what is the maximum number of burritos that Arnold will buy?

(Multiple Choice)

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Question 128

Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos. -Refer to Figure 5.1.If the market price is $1.00,the consumer surplus on the third burrito is ________.

(Multiple Choice)

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Question 129

If equilibrium is achieved in a competitive market,_________.

(Multiple Choice)

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Question 130

Companies in the sharing economy have the potential to lower the equilibrium price in their market,and by doing so increase efficiency.This would have a tendency to ________.

(Multiple Choice)

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Question 131

The division of the burden of a tax between buyers and sellers in a market is called tax allocation.

(True/False)

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Question 132

Figure 5.3 Figure 5.3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40in order to raise the price to $18. -Refer to Figure 5.3.At the equilibrium price of $15,consumers are willing to buy 80 metrics of tiger shrimp.Is this an economically efficient quantity?

(Multiple Choice)

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Question 133

Economic surplus _______.

(Multiple Choice)

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Question 134

Table 5.1 Consumer Willingness to Pay (dollars) Tom 40 Dick 30 Harriet 25 -Refer to Table 5.1.The table above lists the highest prices three consumers,Tom,Dick,and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars,__________.

(Multiple Choice)

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Question 135

What is producer surplus? What does producer surplus measure? __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

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Question 136

A price ceiling is a legally determined maximum price that sellers may charge.

(True/False)

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Question 137

What is the difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays?

(Multiple Choice)

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Question 138

Figure 5.3 Figure 5.3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40in order to raise the price to $18. -Refer to Figure 5.3.The value of consumer surplus at the equilibrium price of $18 is _________.

(Multiple Choice)

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Question 139

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.Suppose that the quantity of labour supplied increases by 40 000 at each wage level.What are the new free-market equilibrium hourly wage and the new equilibrium quantity of labour?

(Multiple Choice)

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Question 140

Suppose the demand curve for a product is vertical and the supply curve is upward sloping.If a unit tax is imposed in the market for this product,_________.

What curve shows the marginal cost of producing one more unit of a good or service?

The government proposes a tax on imported champagne.Buyers will bear the entire burden of the tax if the _________.

In a city with rent-controlled apartments,all of the following are true except:

Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos. -Refer to Figure 5.1.If the market price is $3.00,what is the maximum number of burritos that Arnold will buy?

Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos. -Refer to Figure 5.1.If the market price is $1.00,the consumer surplus on the third burrito is ________.

If equilibrium is achieved in a competitive market,_________.

Companies in the sharing economy have the potential to lower the equilibrium price in their market,and by doing so increase efficiency.This would have a tendency to ________.

The division of the burden of a tax between buyers and sellers in a market is called tax allocation.

Economic surplus _______.

Table 5.1 Consumer Willingness to Pay (dollars) Tom 40 Dick 30 Harriet 25 -Refer to Table 5.1.The table above lists the highest prices three consumers,Tom,Dick,and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of one of the shirts is $28 dollars,__________.

What is producer surplus? What does producer surplus measure? __________________________________________________________________________________________________________________________________________________________________________________________

A price ceiling is a legally determined maximum price that sellers may charge.

What is the difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays?

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

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