RUTGERS MICRO EXAM 1 EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
France and England both produce wine and clothing with
constant opportunity costs. France will have comparative
advantage in wine production if: - ANSWERS-the
opportunity cost of wine production is lower in France than
in England.
we can measure total producer surplus for good X as: -
ANSWERS-the sum of the individual producer surpluses for
all buyers of X
when the market is in equilibrium, the quantity: -
ANSWERS-demanded is equal to quantity supplied
a minimum price set above the equilibrium price is a: -
ANSWERS-price floor
, if the market for grapefruit is in equilibrium without any
outside intervention to change the equilibrium price: -
ANSWERS-consumer and producer surplus are maximized
when the government imposes a quota on sales of a good or
service, it usually licenses the right to sell a given quantity
of the good. the market price of the license is equal to: -
ANSWERS-the quota rent plus the wedge that represents
the difference between the demand price and the supply
price
the law of demand is illustrated by a demand curve that is: -
ANSWERS-downward-sloping
the tendency of people or firms to consume a public good
without paying for it is called the _____ problem -
ANSWERS-free rider
a higher rate is most likely to decrease the amount of
revenue that the government collects from an excise tax if
demand is _____ and supply is _____ - ANSWERS-elastic:
elastic
T or F:
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
France and England both produce wine and clothing with
constant opportunity costs. France will have comparative
advantage in wine production if: - ANSWERS-the
opportunity cost of wine production is lower in France than
in England.
we can measure total producer surplus for good X as: -
ANSWERS-the sum of the individual producer surpluses for
all buyers of X
when the market is in equilibrium, the quantity: -
ANSWERS-demanded is equal to quantity supplied
a minimum price set above the equilibrium price is a: -
ANSWERS-price floor
, if the market for grapefruit is in equilibrium without any
outside intervention to change the equilibrium price: -
ANSWERS-consumer and producer surplus are maximized
when the government imposes a quota on sales of a good or
service, it usually licenses the right to sell a given quantity
of the good. the market price of the license is equal to: -
ANSWERS-the quota rent plus the wedge that represents
the difference between the demand price and the supply
price
the law of demand is illustrated by a demand curve that is: -
ANSWERS-downward-sloping
the tendency of people or firms to consume a public good
without paying for it is called the _____ problem -
ANSWERS-free rider
a higher rate is most likely to decrease the amount of
revenue that the government collects from an excise tax if
demand is _____ and supply is _____ - ANSWERS-elastic:
elastic
T or F:
