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

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.

Econ

Quiz yourself by thinking what should be in each of the black spaces below before clicking on it to display the answer.
        Help!  

Question
Answer
Welfare economics is the study of the well-being of less fortunate people.   show
🗑
With respect to welfare economics, the equilibrium price of a product is considered to be the best price because it maximizes total revenue to firms and total utility to buyers.   show
🗑
show False  
🗑
Consumer surplus is a buyer’s willingness to pay minus the price.   show
🗑
A consumer’s willingness to pay measures the cost of a good to the buyer   show
🗑
. If a consumer is willing and able to pay $20.00 for a particular good but only has to pay $14.00, the consumer surplus is $6.00.   show
🗑
show True  
🗑
show False  
🗑
show False  
🗑
show False  
🗑
If the price a consumer pays for a product is equal to a consumer’s willingness to pay, then the consumer surplus of that purchase would be zero.   show
🗑
show True  
🗑
If you pay a price exactly equal to your willingness to pay, then your consumer surplus is negative.   show
🗑
A demand curve measures a buyer’s willingness to pay.   show
🗑
show True  
🗑
The area below a demand curve and above the price measures producer surplus.   show
🗑
If the price of a good increases, consumer surplus decreases.   show
🗑
show True  
🗑
In most markets, consumer surplus reflects economic well-being.   show
🗑
show False  
🗑
show True  
🗑
show False  
🗑
A supply curve can be used to measure producer surplus because it reflects the actions of sellers.   show
🗑
show False  
🗑
Suppose the demand for nachos increases. Producer surplus in the market for nachos will increase.   show
🗑
show False  
🗑
show False  
🗑
show False  
🗑
Producer surplus equals Value to buyers – Amount paid by buyers.   show
🗑
Producer surplus is the area under the supply curve to the left of the amount sold.   show
🗑
show False  
🗑
Producer surplus measures the well-being of sellers.   show
🗑
Denea produces cookies. Her production cost is $3 per dozen. She sells the cookies for $8 per dozen. Her producer surplus is $3 per dozen.   show
🗑
show False  
🗑
show False  
🗑
show False  
🗑
show False  
🗑
show True  
🗑
show False  
🗑
In a market, total surplus is equal to producer surplus plus consumer surplus.   show
🗑
Total surplus in a market is represented by the total area under the demand curve and above the price.   show
🗑
At the equilibrium price, the good will be purchased by those buyers who value the good more than price.   show
🗑
Total surplus in a market equals Value to buyers – Amount paid by buyers.   show
🗑
show True  
🗑
. An allocation of resources is said to be inefficient if a good is not being produced by the sellers with the lowest cost.   show
🗑
When economists say that markets are efficient, they are assuming that markets are perfectly competitive.   show
🗑
Efficiency occurs when total surplus is maximized.   show
🗑
show True  
🗑
show True  
🗑
Externalities are side effects passed on to a party other than the buyers and sellers in the market.   show
🗑
When markets fail, public policy can do nothing to improve the situation.   show
🗑
If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will increase consumer surplus.   show
🗑
To analyze economic well­being in an economy it is necessary to use demand and supply   show
🗑
When a tax is levied on a good only the quantity of the good sold will change.   show
🗑
show True  
🗑
show True  
🗑
A tax placed on a product causes the price the buyer pays and the price the seller receives to be higher.   show
🗑
Economic analysis uses consumer and producer surplus to judge the effect of taxes on economic welfare   show
🗑
A tax levied on the supplier of a product shifts the supply curve upward (or to the left).   show
🗑
A tax levied on the buyers of a product shifts the  supply curve upward (or to the left).   show
🗑
If a tax is imposed on a market with elastic demand and inelastic supply, buyers will bear most of the burden of the tax.   show
🗑
Suppose a tax is imposed on the buyers of a product. The burden of the tax will fall entirely on the buyers.   show
🗑
A tax imposed on a market with an inelastic demand and an elastic supply will cause sellers to pay the majority of the tax.   show
🗑
show True  
🗑
A tax imposed on gasoline, will have buyers and sellers sharing the burden of the tax.   show
🗑
The benefit received by buyers in the market is measured by the demand curve.   show
🗑
show False  
🗑
show False  
🗑
show False  
🗑
show True  
🗑
show True  
🗑
show False  
🗑
Deadweight loss is the reduction in total surplus that results from a tax.   show
🗑
show False  
🗑
Total surplus with a tax is equal to consumer surplus and producer surplus.   show
🗑
show True  
🗑
show False  
🗑
If the size of a tax increases, tax revenue will increase.   show
🗑
The Laffer curve relates income tax rates to total income taxes collected.   show
🗑
As the tax rate rises, tax revenue rises for a while, but eventually begins to fall; deadweight loss continually rises, this is true for most markets   show
🗑
show True  
🗑
The term tax incidence refers to the  Boston Tea Party   show
🗑
The initial effect of a tax on the buyers of a good is on the supply of that good.   show
🗑
show False  
🗑
show False  
🗑
For the most part, buyers and sellers share the burden of the tax.   show
🗑
When a tax is placed on the buyers of milk, the size of the milk market is reduced.   show
🗑
show True  
🗑
A tax placed on the seller of a product will raise equilibrium price and lower equilibrium quantity.   show
🗑
show True  
🗑
When a tax is placed on the sellers of a product the size of the market is reduced   show
🗑
A tax on the sellers of cell phones will reduce the size of the cell phone market.   show
🗑
show True  
🗑
show False  
🗑
If a tax is imposed on a market with inelastic demand and elastic supply, buyers will bear most of the burden of the tax.   show
🗑
Buyers of a product will pay the majority of a tax placed on a product when supply is more elastic than demand.   show
🗑
If a tax is imposed on a market with elastic demand and inelastic supply, buyers will bear most of the burden of the tax.   show
🗑
show True  
🗑
The burden of a tax placed on a product depends on the supply and demand of that product.   show
🗑
show False  
🗑
show False  
🗑
When analyzing the economic effects of government policies, supply and demand are useful tools of analysis.   show
🗑


   

Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
 
To hide a column, click on the column name.
 
To hide the entire table, click on the "Hide All" button.
 
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
 
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.

 
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
Created by: 129431