ECON 2302 Week 2 Quiz

ECON 2302 Week 2 Quiz  | Assignment Help | Central Texas College

Question 1

Figure 8-10                           

Refer to Figure 8-10. Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that buyers pay is

a. P5.

b. P0.

c. P8.

 d. P2.

Question 2

As the size of a tax rises, the deadweight loss                            

a. falls, and tax revenue first rises, then falls.

b. rises, and tax revenue first rises, then falls.

c. rises as does tax revenue.

d. falls as does tax revenue.

Question 3

A tax on a good                               

a. raises the price that buyers effectively pay and lowers the price that sellers effectively receive.

b. raises the price that buyers effectively pay and raises the price that sellers effectively receive.

c. lowers the price that buyers effectively pay and lowers the price that sellers effectively receive.

d. lowers the price that buyers effectively pay and raises the price that sellers effectively receive.

Question 4

Figure 8-2

The vertical distance between points A and B represents a tax in the market.                                 

Refer to Figure 8-2. The imposition of the tax causes the quantity sold to

a. decrease by 1 unit.

b. decrease by 2 units.

c. increase by 2 units.

d. increase by 1 unit.

Question 5

As the tax on a good increases from $1 per unit to $2 per unit to $3 per unit and so on, the                                 

a. tax revenue always decreases, and the deadweight loss always increases.

b. deadweight loss increases at first, but it eventually peaks and then decreases.

c. tax revenue always increases, and the deadweight loss always increases.

d. tax revenue increases at first, but it eventually peaks and then decreases.

Question 6

Figure 13-10                        

Refer to Figure 13-10. The firm experiences diseconomies of scale if it changes its level of output from

a. Q1 to Q2.

b. Q3 to Q4.

 c. Q4 to Q5.

d. Q2 to Q3.

Question 7

To an economist, the field of industrial organization answers which of the following questions?                                   

a. Why are consumers subject to the law of demand?

b. How does the number of firms affect prices and the efficiency of market outcomes?

c. Why do firms experience diminishing marginal productivities of their inputs?

d. How can government intervention improve industrial production when externalities are present?

Question 8

Figure 13-10                        

Refer to Figure 13-10. The firm experiences economies of scale if it changes its level of output from

a. Q4 to Q5.

b. Q2 to Q3.

c. Q3 to Q4.

d. Q1 to Q2.

Question 9

Constant returns to scale occur when a firm’s                           

a. long-run average total costs do not vary as output increases.

b. marginal costs are constant as output increases.

c. long-run average total costs are increasing as output increases.

d. long-run average total costs are decreasing as output increases.

Question 10

A difference between explicit and implicit costs is that                                   

a. implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.

b. explicit costs do not require a direct monetary outlay by the firm, whereas implicit costs do.

c. implicit costs must be greater than explicit costs.

d. explicit costs must be greater than implicit costs.