Microeconomics- Midterm 2

A person will choose to buy a good as long as

The market demand curve

Consumer surplus is the ________ summed over the quantity bought.

If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer
surplus from pizza will ________.

The drought in the Midwest over the summer has decreased the supply of corn and, as a result,brought a sharp increase in the price of corn. (Source: The Economist, August 4, 2012)
The increase in the price of corn ...

The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number
of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer
surplus decreases by

The figure above shows Clara's demand for CDs. The price for a CD is $15. Which statement is TRUE?

Marginal cost is best defined as

In the figure above, when production is 3 units with a price of $3, the producer surplus in this market equals

At the current level of output, the marginal social benefit from a slice of pizza is less than the marginal social cost of producing a slice of pizza. Resources will be used more efficiently if ________ slices of pizza are produced and ________ other goods are produced

When a market is in equilibrium, the total amount of consumer surplus must be ________ the total
amount of producer surplus.

When the competitive market is using its resources efficiently, the

In the above figure

In the above figure, the total producer surplus at the efficient level of output is __________.

Dead-weight loss is the decrease in __________ from producing an inefficient amount of a product.

Underproduction of good _________ create a dead-weight loss and overproduction of a good ______ create a dead-weight loss.

Overproduction compared to the efficient amount implies that for the last unit produced

If the government restricts the selling of corn so that the quantity is less than the equilibrium quantity the policy.
1. creates a deadweight loss
2. decreases total surplus

In the above figure, at the efficient quantity of CDs

Using the above figure, which of the following quantities of CDs has the largest deadweight loss?

In order to have an effect, a price ceiling must be set ________.

A rent ceiling set above the equilibrium rent

Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result

A rent ceiling results in a shortage of apartments. As a result, there is

In the figure above, the demand curve shifts rightward from
D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $300 per month. In the short run there will be

The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is
set at $800, how many apartment units are rented?

The above figure shows the demand and supply curves for housing As a result of a rent ceiling at $500, the deadweight loss is represented by the are

A minimum wage ________.

A minimum wage set above the equilibrium wage will

The figure above shows the demand for and supply of labor of students in Smallville. If theminimum wage is set at $4 per hour, how many hours do students work?

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $4 per hour, how many hours of students' labor are unemployed?

A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the

In the above figure, a sales tax of $1 per unit imposed on sellers ________ the price buyers pay and
________ the price that suppliers keep for themselves

How a sales tax is divided between buyers and sellers is determined by

When a tax is imposed on a good or service, buyers respond only to the price that ________ the tax, and sellers respond to the price that ________ the tax.

A tax is imposed on the sale of a product. As long as neither the supply nor the demand is perfectly elastic or inelastic

In the above figure, the price paid by the buyer before the tax is ________ per compact disc, and the
price paid by the buyer after the tax is ________ per compact disc

In the above figure, what is the total tax revenue collected by the government?

The sellers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________.

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers

Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?

International trade arises from

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from

In the figure above, with international trade American consumers buy ________ million shirts per year.

In the figure above, international trade ________ total surplus in the United States by ________

A tariff is

If the United States imposes a tariff on imported cars, the

A U.S. tariff imposed on items that can be produced more cheaply abroad

A tariff is imposed on a good. This will ________ the domestic producer surplus, ________ the domestic consumer surplus, and ________ total surplus in the home country.

In the figure above, with the tariff the United States imports ________ million shirts per year

In the figure above, the U.S. government's revenue from the tariff is ________.

In the figure above, the deadweight loss from the tariff is ________.

An import quota on sugar

A key difference between tariffs and quotas is that

Tariffs ________ a deadweight loss and import quotas ________ a deadweight loss.

The most important goal of the firm is to

If instead of working on his own as a consultant making $25,000, Joe takes a job at a bank, the
$25,000 is

Firms organize production by using a mix of

A principal-agent problem occurs when hiring workers to work for a firm because

Which of the following about corporations is TRUE?

Unlimited liability is NOT a characteristic of

A low four firm concentration ratio suggests

The CORRECT ranking of the four basic market structures from most competitive to least competitive is

The ________ the Herfindahl-Hirschman Index (HHI), the ________ the industry