Podcast
Questions and Answers
What is the primary purpose of rent control policies?
What is the primary purpose of rent control policies?
- To make landlords better off
- To make tenants better off (correct)
- To ensure market efficiency
- To address negative externalities
Which of the following best describes consumer surplus?
Which of the following best describes consumer surplus?
- The difference between the lowest price a firm would be willing to accept and the price it actually receives
- The cost to society of a negative externality
- The amount of tax revenue collected by the government
- The difference between the highest price a consumer is willing to pay and the actual price they pay (correct)
Which of the following is an example of a positive externality?
Which of the following is an example of a positive externality?
- The cost of subsidies provided by the government
- Air pollution from a factory
- The benefits to society from a well-educated population (correct)
- Noise pollution from a construction site
How do subsidies affect market efficiency?
How do subsidies affect market efficiency?
Which of the following is the MOST effective government policy for addressing a negative externality?
Which of the following is the MOST effective government policy for addressing a negative externality?
Which of the following is a key characteristic of a competitive market?
Which of the following is a key characteristic of a competitive market?
What term is used to describe the total net benefit to consumers and firms in economics?
What term is used to describe the total net benefit to consumers and firms in economics?
In a competitive equilibrium, when does economic efficiency occur?
In a competitive equilibrium, when does economic efficiency occur?
What happens to consumer surplus when a market is not in equilibrium?
What happens to consumer surplus when a market is not in equilibrium?
Which concept results in the maximization of economic surplus in a market?
Which concept results in the maximization of economic surplus in a market?
What does the supply curve describe in relation to the market for chai tea?
What does the supply curve describe in relation to the market for chai tea?
What happens to consumer surplus when the price of chai tea increases from $2.00 to $2.20?
What happens to consumer surplus when the price of chai tea increases from $2.00 to $2.20?
What does producer surplus measure?
What does producer surplus measure?
Which area on the graph represents producer surplus?
Which area on the graph represents producer surplus?
What does economic efficiency in a market refer to?
What does economic efficiency in a market refer to?
What is the relationship between consumer surplus and producer surplus?
What is the relationship between consumer surplus and producer surplus?
Which of the following is true about a competitive market?
Which of the following is true about a competitive market?
What is the primary purpose of corrective taxes or subsidies in a market?
What is the primary purpose of corrective taxes or subsidies in a market?