ECON Exam #3

question

both equity and efficiency are important goals of the tax system.

answer

Which of the following statements is correct?

question

lower than most European countries

answer

The U.S. tax burden is...

question

a tax on tobacco

answer

Which of the following is an example of an excise tax?

question

use a mix of taxes and fees to generate revenue

answer

State and local governments...

question

raises the same amount of revenue at a higher cost to taxpayers

answer

One tax system is less efficient than another if it...

question

deadweight losses and administrative burdens

answer

In addition to tax payments, the two other primary costs that a tax system inevitably imposes on taxpayers are:

question

Carlos is worse off, and his loss of welfare is part of the deadweight loss of the tax

answer

If Carlos decides to purchase a smaller boat with a 50 hp motor as a result of the tax, which of the following statements is correct?

question

$20 and tax revenues increase by $20, so there is no deadweight loss

answer

The price of a ticket to a convention is $50. Leonard values it at $70, Sheldon at $65, Raj at $60, and Penny at $55. Suppose that if the government taxes tickets at $5 each, the price will rise to $55. A consequence of the tax is that consumer surplus shrinks by

question

$2, and the deadweight loss comes only from Luke because he does not buy gelato after the tax

answer

The government imposes a tax of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is

question

the increase in taxes she would pay as a percentage of the rise in her income

answer

A person's marginal tax rate equals

question

price x quantity

answer

Total revenue equals

question

$500 if he sells 25 candles

answer

Nathan makes candles. If he charges $20 for each candle, his total revenue will be...

question

explicit costs + implicit costs

answer

A firm's opportunity costs of production are equal to its

question

implicit costs

answer

In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's

question

$13,800

answer

What is Ryzard's economic profit from running his own business?

question

labor to be variable and capital to be fixed

answer

Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers...

question

300 units

answer

Looking at the table above, what is the marginal product of the first worker?

question

diminishing marginal product

answer

When this occurs, Bubba's Bubble Gum Company encounters...

question

The cost of the steel that is used in producing automobiles

answer

For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?

question

$95

answer

Zaid's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $65 for 10,000 tents. At that level of output, the firm's average total costs equal...

question

firms' costs of production in that market

answer

For any competitive market, the supply curve is closely related to the

question

free entry and exit of firms

answer

Competitive markets are characterized by

question

double

answer

If a firm in a competitive market doubles its number of units sold, total revenue for the firm will

question

average revenue is equal to price over the entire range of output

answer

Looking at the table below, over which range of output is average revenue equal to price?

question

$120

answer

The following table presents cost and revenue information for a firm operating in a competitive industry. What is the marginal revenue from selling the 4th unit?

question

average revenue and the price for all levels of output

answer

For an individual firm operating in a competitive market, marginal revenue equals

question

a one-unit decrease in output will increase the firm's profit

answer

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

question

its average total cost is less than $10

answer

If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then

question

shut down because staying open would be more expensive

answer

The accountants hired by Forever Fitness have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $125,000. Because of this information, in the short run, Forever Fitness should

question

answer

Looking at the figure above, the firm's short-run supply curve is its marginal cost curve above

question

barriers to entry

answer

The fundamental source of monopoly power is...

question

the government gives a firm the exclusive right to sell some good or service

answer

A government-created monopoly arises when...

question

multiple firms would likely each have to pay large fixed costs to develop their own network of pipes

answer

If the distribution of water is a natural monopoly, then

question

downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve

answer

Monopoly firms face...

question

marginal revenue is less than the price of the product

answer

If a profit-maximizing monopolist faces a downward-sloping market demand curve, its

question

-$70.40

answer

A monopolist can sell 300 units of output for $50 per unit. Alternatively, it can sell 301 units of output for $49.60 per unit. The marginal revenue of the 301st unit of output is..

question

increase regardless of the level of output

answer

Look at the figure below. If the monopoly firm is currently producing Q4 units of output, then a decrease in output will necessarily cause profit to

question

produces an output level less than the socially optimal level

answer

They deadweight loss associated with a monopoly occurs because the monopolist...

question

The triangle 1/2[(X--Z) x (K-J)]

answer

Look at the figure below. What is the area of deadweight loss?

question

higher than if the firm charged just one price because the firm will capture more consumer surplus

answer

A monopolist's profits with price discrimination will be...

1 of 40

question

both equity and efficiency are important goals of the tax system.

answer

Which of the following statements is correct?

question

lower than most European countries

answer

The U.S. tax burden is...

question

a tax on tobacco

answer

Which of the following is an example of an excise tax?

question

use a mix of taxes and fees to generate revenue

answer

State and local governments...

question

raises the same amount of revenue at a higher cost to taxpayers

answer

One tax system is less efficient than another if it...

question

deadweight losses and administrative burdens

answer

In addition to tax payments, the two other primary costs that a tax system inevitably imposes on taxpayers are:

question

Carlos is worse off, and his loss of welfare is part of the deadweight loss of the tax

answer

If Carlos decides to purchase a smaller boat with a 50 hp motor as a result of the tax, which of the following statements is correct?

question

$20 and tax revenues increase by $20, so there is no deadweight loss

answer

question

$2, and the deadweight loss comes only from Luke because he does not buy gelato after the tax

answer

The government imposes a tax of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is

question

the increase in taxes she would pay as a percentage of the rise in her income

answer

A person's marginal tax rate equals

question

price x quantity

answer

Total revenue equals

question

$500 if he sells 25 candles

answer

Nathan makes candles. If he charges $20 for each candle, his total revenue will be...

question

explicit costs + implicit costs

answer

A firm's opportunity costs of production are equal to its

question

implicit costs

answer

In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's

question

$13,800

answer

What is Ryzard's economic profit from running his own business?

question

labor to be variable and capital to be fixed

answer

Suppose that a "doggie day care" firm uses only two inputs: hourly workers (labor) and a building (capital). In the short run, the firm most likely considers...

question

300 units

answer

Looking at the table above, what is the marginal product of the first worker?

question

diminishing marginal product

answer

When this occurs, Bubba's Bubble Gum Company encounters...

question

The cost of the steel that is used in producing automobiles

answer

For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?

question

$95

answer

Zaid's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $65 for 10,000 tents. At that level of output, the firm's average total costs equal...

question

firms' costs of production in that market

answer

For any competitive market, the supply curve is closely related to the

question

free entry and exit of firms

answer

Competitive markets are characterized by

question

double

answer

If a firm in a competitive market doubles its number of units sold, total revenue for the firm will

question

average revenue is equal to price over the entire range of output

answer

Looking at the table below, over which range of output is average revenue equal to price?

question

$120

answer

The following table presents cost and revenue information for a firm operating in a competitive industry. What is the marginal revenue from selling the 4th unit?

question

average revenue and the price for all levels of output

answer

For an individual firm operating in a competitive market, marginal revenue equals

question

a one-unit decrease in output will increase the firm's profit

answer

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

question

its average total cost is less than $10

answer

If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then

question

shut down because staying open would be more expensive

answer

question

answer

Looking at the figure above, the firm's short-run supply curve is its marginal cost curve above

question

barriers to entry

answer

The fundamental source of monopoly power is...

question

the government gives a firm the exclusive right to sell some good or service

answer

A government-created monopoly arises when...

question

multiple firms would likely each have to pay large fixed costs to develop their own network of pipes

answer

If the distribution of water is a natural monopoly, then

question

downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve

answer

Monopoly firms face...

question

marginal revenue is less than the price of the product

answer

If a profit-maximizing monopolist faces a downward-sloping market demand curve, its

question

-$70.40

answer

A monopolist can sell 300 units of output for $50 per unit. Alternatively, it can sell 301 units of output for $49.60 per unit. The marginal revenue of the 301st unit of output is..

question

increase regardless of the level of output

answer

Look at the figure below. If the monopoly firm is currently producing Q4 units of output, then a decrease in output will necessarily cause profit to

question

produces an output level less than the socially optimal level

answer

They deadweight loss associated with a monopoly occurs because the monopolist...

question

The triangle 1/2[(X--Z) x (K-J)]

answer

Look at the figure below. What is the area of deadweight loss?

question

higher than if the firm charged just one price because the firm will capture more consumer surplus

answer

A monopolist's profits with price discrimination will be...

Continue to order Get a quote

ECON Exam #3

Recent Posts

Recent Comments

Calculate the price of your order

Our guarantees

Money-back guarantee

Zero-plagiarism guarantee

Free-revision policy

Privacy policy

Fair-cooperation guarantee