Econ 202 Midterm 3 Dan And Ben 1

Front 1

A price floor

Back 1

results in a surplus if the floor price is higher than the equilibrium price.

Front 2

An example of a price floor is a

Back 2

minimum wage.

Front 3

In the table above, what is the equilibrium wage rate in an unregulated market?

Back 3

$10.00 per hour

Front 4

In the table above, what is the level of unemployment (in millions of workers) if the minimum wage is set at $8 per hour?

Back 4

0

Front 5

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

Back 5

2 million.

Front 6

In the above figure, a minimum wage of ________ would result in employment of ________.

Back 6

W1; L2

Front 7

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?

Back 7

9,000 hours

Front 8

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?

Back 8

0 hours

Front 9

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

Back 9

9,000 hours

Front 10

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?

Back 10

0 hours

Front 11

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?

Back 11

6,000 hours

Front 12

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?

Back 12

6,000 hours

Front 13

A sales tax is imposed on the sellers of gasoline. This tax shifts

Back 13

the supply of gasoline curve leftward.

Front 14

When a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between

Back 14

amount of the sales tax.

Front 15

How a sales tax is divided between buyers and sellers is determined by

Back 15

the elasticities of supply and demand.

Front 16

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.

Back 16

$20; $30

Front 17

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

Back 17

$20; $10

Front 18

what is the amount of the tax per compact disc?

Back 18

$20

Front 19

what is the total tax revenue collected by the government?

Back 19

$400 million

Front 20

who pays the larger share of the tax?

Back 20

Buyers and sellers each pay the same amount of the tax and each pays $10 per compact disc.

Front 21

the amount of the tax per unit imposed on the sellers is

Back 21

$2.00.

Front 22

the amount of tax revenue is

Back 22

$4,000.

Front 23

the deadweight loss due to the tax is

Back 23

$1,000.

Front 24

The amount of a tax paid by the buyers will be larger the

Back 24

more inelastic the demand and the more elastic the supply.

Front 25

The amount of a tax paid by the buyers will be smaller the

Back 25

more elastic the demand and the more inelastic the supply.

Front 26

The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies

Back 26

consumers would pay more of the tax.

Front 27

the market for neckties. Based on the graph, how much tax per necktie has been imposed by the government?

Back 27

1.00 per tie

Front 28

the market for neckties after the government has imposed a tax. How much government revenue is generated by the tax?

Back 28

$400.00 per month

Front 29

the market for neckties after the government has imposed a tax. How much deadweight loss results from this tax?

Back 29

$50.00

Front 30

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

Back 30

decreased the production of cotton in Georgestan by 8 million pounds.

Front 31

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.

Back 31

inefficient; less than

Front 32

Suppose sugar is exported from a nation. In the sugar market who does NOT benefit from the exports?

Back 32

domestic consumers

Front 33

Suppose the world price of a good is $4. Based on the table below, the country would

Back 33

import 20 units.

Front 34

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

Back 34

export 50 units.

Front 35

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 ________.

Back 35

decrease; increase; increase

Front 36

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.

Back 36

48

Front 37

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

Back 37

16

Front 38

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.

Back 38

imports 32

Front 39

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 ________.

Back 39

increases; $320 million

Front 40

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 ________ .

Back 40

decreases; $192 million

Front 41

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 ________.

Back 41

increases; $128 million

Front 42

A tariff is a

Back 42

tax on an imported good or service.

Front 43

A tariff is a tax that is imposed by the ________ country when an ________ good crosses its international boundary.

Back 43

importing; imported

Front 44

If the United States imposes a tariff on imported cars, the

Back 44

U.S. supply curve shifts rightward.

Front 45

If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports.

Back 45

raises; decreases

Front 46

Increasing a tariff will ________ the domestic quantity consumed of the good, while ________ the domestic production of the good.

Back 46

decrease; increasing

Front 47

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.

Back 47

40

Front 48

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.

Back 48

16

Front 49

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.

Back 49

decreases; 16

Front 50

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.

Back 50

increases; 8 million

Front 51

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 ________.

Back 51

$64 million

Front 52

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 ________.

Back 52

loss; $176 million

Front 53

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 ________.

Back 53

gain; $80 million

Front 54

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 ________.

Back 54

$32 million

Front 55

Tom's consumption possibilities is defined by

Back 55

his income and the prices of the goods that he consumes.

Front 56

Liz's marginal utility for two different goods is determined by

Back 56

how much benefit she gets from another unit of each of those goods.

Front 57

The marginal utility from the consumption of a good is equal to the

Back 57

change in total utility divided by the change in the quantity consumed.

Front 58

If Pete enjoys his first pancake of the morning much more than his fifth pancake of the morning, he is exhibiting

Back 58

diminishing marginal utility.

Front 59

The principle of diminishing marginal utility implies that the

Back 59

rate of change of total utility is diminishing as more units are consumed.

Front 60

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.

Back 60

40

Front 61

table gives some of Tammy's total and marginal utilities from comedy videos. Which of the following statements is true?

Back 61

Tammy's total utility from five comedy videos is 800.

Front 62

The table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases,

Back 62

his total utility increases, but his marginal utility decreases

Front 63

The table shows Homer's utility from boxes of doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his

Back 63

total utility will decrease, but his marginal utility will increase.

Front 64

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

Back 64

20

Front 65

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?

Back 65

225

Front 66

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?

Back 66

160

Front 67

Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good ________.

Back 67

is the same

Front 68

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?

Back 68

4 DVDs and 2 pizzas

Front 69

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?

Back 69

1 DVD and 3 pizzas

Front 70

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?

Back 70

2 DVDs and 4 pizzas