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70 Cards in this Set
- Front
- Back
A price floor |
results in a surplus if the floor price is higher than the equilibrium price. |
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An example of a price floor is a |
minimum wage. |
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In the table above, what is the equilibrium wage rate in an unregulated market? |
$10.00 per hour |
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In the table above, what is the level of unemployment (in millions of workers) if the minimum wage is set at $8 per hour? |
0 |
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In the table above, the market is in equilibrium. Then a minimum wage is set at $11 per hour. The number of unemployed workers will be |
2 million. |
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In the above figure, a minimum wage of ________ would result in employment of ________. |
W1; L2 |
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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 do students work? |
9,000 hours |
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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? |
0 hours |
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the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours do students work |
9,000 hours |
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the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours of students' labor are unemployed? |
0 hours |
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demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours do students work? |
6,000 hours |
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demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours of students' labor are unemployed? |
6,000 hours |
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A sales tax is imposed on the sellers of gasoline. This tax shifts |
the supply of gasoline curve leftward. |
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When a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between |
amount of the sales tax. |
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How a sales tax is divided between buyers and sellers is determined by |
the elasticities of supply and demand. |
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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. |
$20; $30 |
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the price received by the seller before the tax is ________ per compact disc, and the price received and kept by the seller after the tax is ________ per compact |
$20; $10 |
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what is the amount of the tax per compact disc? |
$20 |
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what is the total tax revenue collected by the government? |
$400 million |
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who pays the larger share of the tax? |
Buyers and sellers each pay the same amount of the tax and each pays $10 per compact disc. |
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the amount of the tax per unit imposed on the sellers is |
$2.00. |
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the amount of tax revenue is |
$4,000. |
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the deadweight loss due to the tax is |
$1,000. |
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The amount of a tax paid by the buyers will be larger the |
more inelastic the demand and the more elastic the supply. |
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The amount of a tax paid by the buyers will be smaller the |
more elastic the demand and the more inelastic the supply. |
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The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies |
consumers would pay more of the tax. |
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the market for neckties. Based on the graph, how much tax per necktie has been imposed by the government? |
1.00 per tie |
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the market for neckties after the government has imposed a tax. How much government revenue is generated by the tax? |
$400.00 per month |
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the market for neckties after the government has imposed a tax. How much deadweight loss results from this tax? |
$50.00 |
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market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The introduction of the quota has |
decreased the production of cotton in Georgestan by 8 million pounds. |
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market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. With the quota in place, the amount of cotton produced in Georgestan is ________ because the marginal social cost of a pound of cotton is ________ the marginal social benefit of a pound of cotton. |
inefficient; less than |
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Suppose sugar is exported from a nation. In the sugar market who does NOT benefit from the exports? |
domestic consumers |
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Suppose the world price of a good is $4. Based on the table below, the country would |
import 20 units. |
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In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will |
export 50 units. |
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A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________. |
decrease; increase; increase |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 36. In the figure above, with international trade American consumers buy ________ million shirts per year. |
48 |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 37. with international trade ________ million shirts per year are produced in the United States |
16 |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 38. with international trade the United States ________ million shirts per year. |
imports 32 |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 39. international trade ________ consumer surplus in the United States by ________. |
increases; $320 million |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 40. international trade ________ producer surplus in the United States by ________ . |
decreases; $192 million |
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Shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. 41. international trade ________ total surplus in the United States by ________. |
increases; $128 million |
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A tariff is a |
tax on an imported good or service. |
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A tariff is a tax that is imposed by the ________ country when an ________ good crosses its international boundary. |
importing; imported |
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If the United States imposes a tariff on imported cars, the |
U.S. supply curve shifts rightward. |
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If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports. |
raises; decreases |
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Increasing a tariff will ________ the domestic quantity consumed of the good, while ________ the domestic production of the good. |
decrease; increasing |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, with the tariff American consumers ________ million shirts per year. |
40 |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, with the tariff the United States imports ________ million shirts per year. |
16 |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, with the tariff the United States imports ________ million shirts per year. |
decreases; 16 |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year. |
increases; 8 million |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, the U.S. government's revenue from the tariff is ________. |
$64 million |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. consumers' ________ from the tariff is ________. |
loss; $176 million |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. producers' ________ from the tariff is ________. |
gain; $80 million |
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The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, the deadweight loss from the tariff is ________. |
$32 million |
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Tom's consumption possibilities is defined by |
his income and the prices of the goods that he consumes. |
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Liz's marginal utility for two different goods is determined by |
how much benefit she gets from another unit of each of those goods. |
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The marginal utility from the consumption of a good is equal to the |
change in total utility divided by the change in the quantity consumed. |
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If Pete enjoys his first pancake of the morning much more than his fifth pancake of the morning, he is exhibiting |
diminishing marginal utility. |
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The principle of diminishing marginal utility implies that the |
rate of change of total utility is diminishing as more units are consumed. |
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The table shows Elaine's utility from pizza and Pepsi. If Elaine consumes 2 slices of pizza and 3 Pepsis, her marginal utility from the fourth Pepsi is ________ units. |
40 |
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table gives some of Tammy's total and marginal utilities from comedy videos. Which of the following statements is true? |
Tammy's total utility from five comedy videos is 800. |
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The table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, |
his total utility increases, but his marginal utility decreases |
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The table shows Homer's utility from boxes of doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his |
total utility will decrease, but his marginal utility will increase. |
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The above table shows Homer's utility from boxes of doughnuts. The marginal utility that Homer receives from the third box of doughnuts is equal to |
20 |
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. For Kelly, what is the total utility received from consuming 5 magazines? |
225 |
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages? |
160 |
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Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good ________. |
is the same |
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Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10, the price of a DVD is $5, and Lisa has $40 to spend on the two goods, what combination of pizza and DVDs will maximize her utility? |
4 DVDs and 2 pizzas |
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Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10 and the price of a DVD is $10 and Lisa has $40 to spend on the two goods, what combination of pizza and DVDs will maximize her utility? |
1 DVD and 3 pizzas |
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Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10 and the price of a DVD is $10 and Lisa has $60 to spend on the two goods, what combination of pizza and DVDs will maximize her utility? |
2 DVDs and 4 pizzas |