Microeconomics 13 14 15

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Posted on

May 24th, 2023

question

Regulation

answer

Government intervention to alter the behavior of firms-in pricing, output, advertising.

question

Natural Monopoly

answer

An industry in which one firm can achieve economies of scale over the entire range of market supply

question

Economies of scale

answer

Reductions in minimum average costs that come about through increases in the size (scale) of plant and equipment.

question

economic profit

answer

difference between total revenues and total economic costs

question

Marginal cost pricing

answer

The offer of goods at prices equal to their marginal cost.

question

cross subsidization

answer

use of high prices and profits on one product to subsidize low prices on another product

question

contestable market

answer

an imperfectly competitive industry subject to potential entry if prices or profits increase

question

product decision

answer

the selection of the short run rate of output (with existing plant and equipment)

question

efficiency decision

answer

The choice of a production process for any given rate of output

question

external cost

answer

Cost of a market activity borne by a third party; the difference between the social and private costs of a market activity.

question

social costs

answer

the full resource costs of an economic activity, including externalities

question

private costs

answer

The costs of an economic activity directly borne by the immediate producer or consumer (excluding externalities).

question

emission charge

answer

A fee imposed on polluters, based on the quantity of pollution.

question

optimal rate of pollution

answer

The rate of pollution that occurs when the marginal social benefit of pollution control equals its marginal social cost

question

economic profit

answer

The difference between total revenues and total economic costs

question

price elasticity of demand

answer

the percentage change in quantity demanded divided by the percentage change in price

question

income elasticity of demand

answer

Percentage change in quantity demanded divided by percentage change in income

question

parity

answer

The relative price of farm products in the period 1910-1914

question

acreage set-aside

answer

Land withdrawn from production as part of policy to increase crop prices

question

loan rate

answer

The implicit price paid by the government for surplus crops taken as collateral for loans to farmers

question

countercyclical payment

answer

income transfer paid to farmers for difference between target and market prices.

question

not producing optimal output leads to

answer

Market Failure

question

occurs when you dont allocate

answer

Market Failure

question

major goal of government

answer

encourage competition

question

government can regulate behavior and alternate or limit the market structure

answer

in anti trust

question

example of government impact market stucture

answer

eliminate mergers, and aquisitions

question

unregulated natural monopoly can lead

answer

unfair profits, suboptimal mix, less output than society wants

question

compliance cost

answer

costs borne by the firms that is being regulated.

question

thermal pollution

answer

pollution created by the heating of water

question

U.S produces 5 billions tons of solid waste a year

answer

70% water is purified 30% is not

question

biggest dilema for Government

answer

Is it societys best interest to pursue a 0% pollution environment

question

the governent taxes

answer

on the rate companys pollute

question

toyota

answer

is leading pollution restriction car industry

question

EPA (environment protection agencie)

answer

50 billion a year in U.S. from pollution

question

incintives that discourage pollution

answer

emission charge, green taxes(tax on gas) higher user fees

question

process regulation

answer

sorting, recycling of trash

question

pollution permit

answer

get a permit to pollute, if u exceed limit you pay a fee

question

farmers are

answer

price takers

question

u.s. federal government spends

answer

15-20 billion a year subsidizing farmers

question

prices are unstable because there is a

answer

lag time from time you plant to time you harvest the crop

question

farmers have a low elasticity of demand

answer

prices of farmed goods are inalastic

question

in order for a farmer to continue to earn economic profit

answer

he must continue to improve his prductivity

question

U.S. gov imposes supply restrictions

answer

supply restriction: set aside

question

set aside

answer

reduce limit land from production

question

marketing order

answer

forces farmers to destroy crops

1 of 45

question

Regulation

answer

Government intervention to alter the behavior of firms-in pricing, output, advertising.

question

Natural Monopoly

answer

An industry in which one firm can achieve economies of scale over the entire range of market supply

question

Economies of scale

answer

Reductions in minimum average costs that come about through increases in the size (scale) of plant and equipment.

question

economic profit

answer

difference between total revenues and total economic costs

question

Marginal cost pricing

answer

The offer of goods at prices equal to their marginal cost.

question

cross subsidization

answer

use of high prices and profits on one product to subsidize low prices on another product

question

contestable market

answer

an imperfectly competitive industry subject to potential entry if prices or profits increase

question

product decision

answer

the selection of the short run rate of output (with existing plant and equipment)

question

efficiency decision

answer

The choice of a production process for any given rate of output

question

external cost

answer

Cost of a market activity borne by a third party; the difference between the social and private costs of a market activity.

question

social costs

answer

the full resource costs of an economic activity, including externalities

question

private costs

answer

The costs of an economic activity directly borne by the immediate producer or consumer (excluding externalities).

question

emission charge

answer

A fee imposed on polluters, based on the quantity of pollution.

question

optimal rate of pollution

answer

The rate of pollution that occurs when the marginal social benefit of pollution control equals its marginal social cost

question

economic profit

answer

The difference between total revenues and total economic costs

question

price elasticity of demand

answer

the percentage change in quantity demanded divided by the percentage change in price

question

income elasticity of demand

answer

Percentage change in quantity demanded divided by percentage change in income

question

parity

answer

The relative price of farm products in the period 1910-1914

question

acreage set-aside

answer

Land withdrawn from production as part of policy to increase crop prices

question

loan rate

answer

The implicit price paid by the government for surplus crops taken as collateral for loans to farmers

question

countercyclical payment

answer

income transfer paid to farmers for difference between target and market prices.

question

not producing optimal output leads to

answer

Market Failure

question

occurs when you dont allocate

answer

Market Failure

question

major goal of government

answer

encourage competition

question

government can regulate behavior and alternate or limit the market structure

answer

in anti trust

question

example of government impact market stucture

answer

eliminate mergers, and aquisitions

question

unregulated natural monopoly can lead

answer

unfair profits, suboptimal mix, less output than society wants

question

compliance cost

answer

costs borne by the firms that is being regulated.

question

thermal pollution

answer

pollution created by the heating of water

question

U.S produces 5 billions tons of solid waste a year

answer

70% water is purified 30% is not

question

biggest dilema for Government

answer

Is it societys best interest to pursue a 0% pollution environment

question

the governent taxes

answer

on the rate companys pollute

question

toyota

answer

is leading pollution restriction car industry

question

EPA (environment protection agencie)

answer

50 billion a year in U.S. from pollution

question

incintives that discourage pollution

answer

emission charge, green taxes(tax on gas) higher user fees

question

process regulation

answer

sorting, recycling of trash

question

pollution permit

answer

get a permit to pollute, if u exceed limit you pay a fee

question

farmers are

answer

price takers

question

u.s. federal government spends

answer

15-20 billion a year subsidizing farmers

question

prices are unstable because there is a

answer

lag time from time you plant to time you harvest the crop

question

farmers have a low elasticity of demand

answer

prices of farmed goods are inalastic

question

in order for a farmer to continue to earn economic profit

answer

he must continue to improve his prductivity

question

U.S. gov imposes supply restrictions

answer

supply restriction: set aside

question

set aside

answer

reduce limit land from production

question

marketing order

answer

forces farmers to destroy crops

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