Question

Class: Econ 201 Spring 2019 Due: Assignment Indicate the answer choice that best completes the statement or answers the question 1. When policymakers make policies that change the costs and benefits that people face, what is the result for socicty? a. people's behaviours are altered b. people ignore incentives c. inflation occurs d. government revenue is reduced 2. How does the invisible hand direct economic activity? a. through advertising b. through prices e through central planning d. through government regulations 3. Suppose Lauren, Leslie, and Lyndsay all purchase bulletin boards for their rooms for S15 each. Lauren's willingness to pay was S35, Leslie's willingness to pay was $25, and Lyndsay's willingness to pay was $30. Rank their consumer surplus from high to low a. Lauren, Lyndsay, and Leslie b. Leslie, Lyndsay, and Lauren e. Lyndsay, Leslie, and Lauren d. Lauren, Leslie, and Lyndsay 4. Market demand is given as QD- 210-3P. Market supply is given as OS-2P competitive equilibrium, what will be the value of consumer surplus? a. $1400 b. $2166 50. In a perfectly c. $3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a. increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice e. decrease consumer surplus in the market for orange juice but increase producer surplus in the market for apple juice d. decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for apple juice 6. A tax is imposed on a market with clastic demand and inclastic supply. Who bears most of the burden of the tax? a. Buyers will bear most of the burden of the tax. b. Sellers will bear most of the burden of the tax c. The burden of the tax will be shared equally between buyers and sellers Page 1

Answer 1

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