Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
1 view 0 purchase
Course
Microeconomics
Institution
Microeconomics
Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
When calculating producer surplus for an individual firm, ______ the firm's willingness to accept from the market price - Answers subtract
You received $250 for a stationary bike and had a producer surplus of $50. Yo...
Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
When calculating producer surplus for an individual firm, ______ the firm's willingness to accept from
the market price - Answers subtract
You received $250 for a stationary bike and had a producer surplus of $50. You were willing to accept -
Answers $200
A tax - Answers increases the costs of goods sold and shifts the supply curve up
A tax on suppliers - Answers shifts supply curve up vertically
When calculating tax revenue, calculate the area between the total price paid by ______ and the net
price received by ______, from zero to quantity traded - Answers consumers; suppliers
When calculating producer surplus for the market, - Answers calculate the area above the supply curve
and below the equilibrium price, from zero to quantity traded
The difference between the price producers receive for a good or a service and the minimum price they
are willing and able to accept is - Answers producer surplus
The difference between the economic surplus when the market is at its competitive equilibrium and the
economic surplus when the market is not in equilibrium is the - Answers deadweight loss
______ is a branch of economics that focuses on measuring the well-being of market participants and
how changes in the market affect their well-being - Answers Welfare Economics
All else equal, when the price increases, producer surplus - Answers increases
Consumer surplus is measured in - Answers dollars
All else equal, when the price decreases, consumer surplus - Answers increases
Graphically, producer surplus is the area ______ the supply curve and ______ the equilibrium price,
from zero to the quantity traded - Answers above; below
When marginal benefit equals marginal cost, economic ______ is maximized in the market - Answers
surplus
When calculating consumer surplus for an entire market - Answers calculate the area below the demand
curve and above the equilibrium price, from zero to the quantity traded
Low prices are good for consumers if - Answers they occur naturally in the market
______ surplus can be thought of as the wealth that trade creates for consumers in a market - Answers
Consumer
______ surplus will always be less with a banding price floor than without - Answers Consumer
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
