Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Microeconomics Exam2

QuestionAnswer
Consumer surplus Buyers’ willingness to pay for a good minus the amount they actually pay
Consumer surplus measures The benefit buyers get from participating in a market
Consumer surplus can be computed by Finding the area below the demand curve and above the price.
Producer surplus The amount sellers receive for their goods minus their costs of production
Producer surplus measures The benefit sellers get from participating in a market
Producer surplus can be computed by the area below the price and above the supply curve
Total surplus The sum of consumer and producer surplus
What maximizes total surplus? The equilibrium of supply and demand
Willingness to pay the maximum amount that a buyer will pay for a good
Cost the value of everything a seller must give up to produce a good
A price ceiling is A legal maximum on the price of a good or service.
If the price ceiling is below the equilibrium price, then the price is binding
When the price ceiling is binding the quantity demanded exceeds the quantity supplied
A price floor is a legal minimum on the price of a good or service.
If the price floor is above the equilibrium price, then the price is binding
When the price floor is binding the quantity supplied exceeds the quantity demanded
When the government levies a tax on a good, the equilibrium quantity of the good Falls
A tax on a good places a wedge between the price paid by buyers and the price received by sellers
When the market moves to the new equilibrium buyers pay more for the good and sellers receive less for it.
The incidence of a tax depends on the price elasticities of supply and demand
tax incidence the manner in which the burden of a tax is shared among participants in a market
How Taxes on Sellers Affect Market Outcomes -The supply curve will shift left by the exact amount of the tax -The quantity of the good sold will decline.
Lessons on taxes 1. Taxes discourage market activity. 2. Buyers and sellers share the burden of a tax
How Taxes on Buyers Affect Market Outcomes -The demand curve will shift left by the exact amount of the tax -Decrease in demand
When supply is elastic and demand is inelastic the largest share of the tax burden falls on consumers
When supply is inelastic and demand is elastic the largest share of the tax burden falls on producers
In general, a tax burden falls more heavily on the side of the market that is less elastic
A small elasticity of demand means buyers do not have good alternatives to consuming this product
small elasticity of supply means sellers do not have good alternatives to producing this particular good
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards