Quiz 4 of ECON251 Purdue University In Tutorial Library
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TITLE: Quiz 4 of ECON251 Purdue University
UNIVERSITY / INSTITUTE: Purdue University
CLASS / COURSE: Economics
QUESTION DESCRIPTION:
Quiz 4:
. (Points: 0.67)
Consumer surplus is equal to:
a. a. total area under the demand curve.
b. b. total area under the demand curve down to the market price.
c. c. the vertical distance from the demand curve down to the horizontal axis.
d. d. the area from the demand curve to the supply curve less than the equilibrium
2. (Points: 0.67)
When marginal benefit in a market is equal to $75 while marginal cost is equal to $54, then economic efficiency:
a. a. has been achieved.
b. b. has not been achieved; less needs to be produced.
c. c. has not been achieved; more needs to be produced.
d. d. cannot be achieved.
3. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, at equilibrium consumer surplus would be:
a. a. X.
b. b. X+Y+Z.
c. c. A+B+C.
d. d. C.
4. (Points: 0.66)
What does tax incidence refer mean?
a. a. Which government agency actually receives the tax revenue.
b. b. Who sends the tax money into the government.
c. c. What commodity is being taxed.
d. d. Who actually bears the burden of the tax.
5. (Points: 0.67)
If a producer is willing to sell a unit of output at $15 and the market price is $20, the $5 difference is:
a. a. total profit.
b. b. average profit.
c. c. producer surplus.
d. d. consumer surplus.
6. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, with an effective price floor, producer surplus would be:
a. a. X.
b. b. X+Y.
c. c. Y+A+C.
d. d. A+C.
7. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, with an effective price floor, there would be:
a. a. a shortage of Q4-Q1.
b. b. a surplus of Q4-Q1.
c. c. a shortage of Q3-Q2.
d. d. a surplus of Q3-Q2.
8. (Points: 0.66)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, the deadweight loss associated with an effective price floor would be:
a. a. Z+B.
b. b. Y+A.
c. c. A+C.
d. d. N+F.
9. (Points: 0.67)
If you would have been willing to pay $10 for a pizza and you only had to pay $8, what does the difference between $10 and $8 represent?
a. a. Marginal benefit
b. b. Average benefit
c. c. Total benefit
d. d. Consumer surplus
10. (Points: 0.66)
What impact does a payroll tax levied only on workers have?
a. a. The demand for labor decreases.
b. b. The quantity demanded of labor decreases.
c. c. The supply of labor decreases.
d. d. The quantity supplied of labor decreases.
11. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, at equilibrium producer surplus would be:
a. a. X.
b. b. X+Y+Z.
c. c. A+B+C.
d. d. C.
12. (Points: 0.66)
The minimum wage is an example of
a. a. a competitive equilibrium price.
b. b. a price ceiling.
c. c. a price floor.
d. d. a tax on a market.
13. (Points: 0.66)
If a tax is imposed on the producer:
a. a. more of the incidence will fall on the producer.
b. b. more of the incidence will fall on the consumer.
c. c. more of the incidence will fall on the government.
d. d. what party the incidence of the tax falls on will be no different than if the tax was imposed on the consumer.
14. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, an effective price floor would be:
a. a. P1.
b. b. P2.
c. c. P3.
d. d. all of these.
15. (Points: 0.67)
Refer to 4.1 for the questions below.
Figure 4.1
In figure 4.1, with an effective price floor, consumer surplus would be:
a. a. X.
b. b. X+Y+Z.
c. c. A+B+C.
d. d. C.
SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.
SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics
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