Microeconomics Quizzes – Test 2

if a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is ______. [9.16]

suppose that quantity demand falls by 30% as a result of a 5% increase in price. the price elasticity of demand for this good is ____________. [9.16]

if a 6% decrease in price for a good results in a 2% increase in quantity demanded, the price elasticity of demand is _____. [9.16]

if a 10% decrease in. price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is ____. [9.16]

goods with many close substitutes tend to have ____ _______ ________. [9.16]

if the price elasticity of demand for a good is 0.8, then a 12 percent increase in the quantity demanded must be the result of _____. [9.16]

if the price elasticity of demand for a good is 2, then a 10 percent decrease in the quantity demanded must be the result of _____. [9.16]

demand is said to be inelastic if _____________. [9.16]

economists compute the price elasticity of demand as the _____. [9.16]

demand is said to be price elastic if __________. [9.16]

when demand is inelastic, a decrease in price will cause _____. [9.18]

Refer to Figure 5-9
if the price rises from point d to point c, total revenue _______. [9.18]

Refer to Figure 5-5
at a price of $10 per unit, sellers' total revenue equals ______. [9.18]

get smart university is contemplating an increase in tuition to enhance revenue. if gsu feels that raising tuition would enhance revenue, it is _________. [9.18]

Refer to Figure 5-9
if the price falls from point a to point b, total revenue _______. [9.18]

Refer to Figure 5-10
if rectangle d is larger than rectangle a, then _______. [9.18]

Refer to Figure 5-5
at a price of $50 per unit, sellers' total revenue equals _______. [9.18]

Refer to Figure 6-1
the price ceiling shown in panel (b) _________. [9.23]

Refer to Figure 6-1
the price ceiling shown in panel (a) ___________. [9.23]

Refer to Figure 6-1
in which panel(s) of the figure would there be a shortage of the good at the price ceiling? [9.23]

Refer to Table 6-5
which of the following price floors would be binding in this market? [9.23]

Refer to Table 6-5
which of the following price ceilings would be binding in this market? [9.23]

a minimum wage that is set below a market's equilibrium wage will ____________. [9.23]

Refer to Figure 6-1
a binding price ceiling is shown in ________. [9.23]

Refer to Table 6-5
suppose the government imposes a price floor of $3 on this market. what will be the size of the surplus (or shortage) in this market?

a minimum wage that is set above a market's equilibrium wage will result in an excess __________. [9.23]

Refer to Table 6-5
suppose the government imposes a price ceiling of $3 on this market. what will be the size of the shortage in this market? [9.23]

when a tax is levied on sellers of tea, ________. [9.25]

Refer to Figure 6-18
the amount of the tax per unit is ____. [9.25]

Refer to Figure 6-18
the price that buyers pay after the tax is imposed is _____. [9.25]

Refer to Figure 6-18
the vertical distance between points a and b represents the tax in the market
the per-unit burden of the tax on sellers is ____. [9.25]

Refer to Figure 6-18
the vertical distance between points a and b represents the tax in the market
the effective price that sellers receive after the tax is imposed is ____. [9.25]

Refer to Figure 6-18
the vertical distance between points a and b represents the tax in the market
the per-unit burden of the tax on buyers is _______. [9.25]

a tax on sellers will shift the _______. [9.25]

Refer to Figure 6-33
the diagram shows the effect of a tax as measured by the distance between J and K
based upon the diagram, _________. [9.25]

Refer to Figure 6-23
how much tax revenue does this tax produce for the government? [9.25]

suppose the government imposes a 30-cent tax on the sellers of soft drinks. which of the following is not correct? the tax would _____. [9.25]

Refer to Figure 10-20
the graph depicts the market for fertilizer. what is the socially optimal quantity of fertilizer? [9.30]

Refer to Figure 10-20
the graph depicts the market for fertilizer. without any government regulation, what is the equilibrium price of fertilizer? [9.30]

an optimal tax on pollution would result in which of the following? [9.30]

since air pollution creates a negative externality, [9.30]

Refer to Figure 10-20
the graph depicts the market for fertilizer. what is the socially optimal price of fertilizer? [9.30]

which of the following is NOT an example of negative externality? [9.30]

if a sawmill creates too much noise for local residents, [9.30]

Refer to Figure 10-20
the graph depicts the market for fertilizer. without any government regulation, how much fertilizer will be produced? [9.30]

Refer to Figure 10-20
without government intervention, [9.30]

assuming education results in a positive externality, which of the following statements is correct? [10.2]

university researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. if there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced? [10.2]

which of the following is an example of a positive externality? [10.2]

suppose that flu shots create a positive externality equal to $12 per shot. what is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced? [10.2]

which of the following is an example of a positive externality? [10.2]

education yields positive externalities. for example, a more educated population [10.2]

if education produced positive externalities, we would expect [10.2]

a positive externality [10.2]

honey producers provide a positive externality to orchards because [10.2]

since restored historic buildings convey a positive externality, local governments may choose to [10.2]