- Samenvattingen en Aantekeningen

AREC 202 FINAL UPDATED ACTUAL Questions and CORRECT Answers Excise Tax - CORRECT ANSWER- Tax on sales of a good or service: "per-unit" tax Effects: 1. It raises price paid by buyer 2. Reduces price received by sellers 3. Drives a wedge between the two ** If the producer is taxed, the supply curve will shift upwards by the amount of the tax. ** If the consumer is taxed, the demand curve will shift downwards by the amount of the tax. **It does not matter who is actually paying t...

Leaving this market to itself without government regulation, by how much would each firm decrease its pollution? By 0 tons. What is the socially optimal outcome? Firm A decreases pollution by 3 tons, B by 2 tons, C by 1 ton, for a total of 6 tons. First policy: The government orders all three firms to decrease pollution by 2 tons each. What is the total cost of decreasing pollution to the three firms combined? $47 (=2+5+5+10+10+15) Second policy: the government implements a tax of $5.10 pe...

What is economics, and what does it have to do with your life? The study of how people make choices under conditions of scarcity What is the difference between microeconomics and macroeconomics? Macro: the study of national economies and policies the government uses to improve performance. Micro: the study of choice under scarcity and its implications for behaviors of prices/quantities for an individual market. What are the opportunity costs in general? How are they being calculated in a t...

Leaving this market to itself without government regulation, by how much would each firm decrease its pollution? By 0 tons. What is the socially optimal outcome? Firm A decreases pollution by 3 tons, B by 2 tons, C by 1 ton, for a total of 6 tons. First policy: The government orders all three firms to decrease pollution by 2 tons each. What is the total cost of decreasing pollution to the three firms comb

Leaving this market to itself without government regulation, by how much would each firm decrease its pollution? By 0 tons. What is the socially optimal outcome? Firm A decreases pollution by 3 tons, B by 2 tons, C by 1 ton, for a total of 6 tons. First policy: The government orders all three firms to decrease pollution by 2 tons each. What is the total cost of decreasing pollution to the three firms combined? $47 (=2+5+5+10+10+15)

What is economics, and what does it have to do with your life? The study of how people make choices under conditions of scarcity What is the difference between microeconomics and macroeconomics? Macro: the study of national economies and policies the government uses to improve performance. Micro: the study of choice under scarcity and its implications for behaviors of prices/quantities for an individual market. What are the opportunity costs in general? How are they being calculated in a t...

What is economics, and what does it have to do with your life? The study of how people make choices under conditions of scarcity What is the difference between microeconomics and macroeconomics? Macro: the study of national economies and policies the government uses to improve performance. Micro: the study of choice under scarcity and its implications for behaviors of prices/quantities for an individual market. What are the opportunity costs in general? How are they being calculated in a t...

AREC 202 FINAL EXAM QUESTIONS AND ANSWERS 100% SOLVED 1. The optimal level of any activity (for consumers, firms or governments) is where A) average benefits from this activity equal average costs of this activity. B) total benefits from this activity equal total costs of this activity. C) marginal benefits from this activity equal marginal costs of this activity. D) marginal benefits from this activity are maximized. 1. To decide whether to increase an activity by one unit you should...