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Econ B-251 IU Exam 2 Questions with 100% Correct Answers | Verified | Latest Update 2024
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Econ B-251 IU Exam 2 Questions with 100% Correct Answers | Verified | Latest Update
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Econ B-251 IU Exam 2 Questions with100% Correct Answers | Verified | Latest
Update
whenidemandiisimoreiinelastic,i______________ipayimoreiofitheitaxi-
iCorrectiAnswer-consumers
whenidemandiisimoreielastic,i______________ipayimoreiofitheitaxi-
iCorrectiAnswer-producers
whenidemandiisiunitielastic,iconsumersiandiproducersipayi__________
___iofitheitaxi-iCorrectiAnswer-theisameiamount
protectionismi-iCorrectiAnswer-
regulationsithatiburdensiforeigniproducersibutinotidomesticiproducers
tariffi-iCorrectiAnswer-taxioniimports
tradeiquotai-iCorrectiAnswer-
restrictionionitheiquantityiofiforeignigoodsithaticanibeiimported
tariffsiraisei______________ifori_______________i-iCorrectiAnswer-
taxirevenue,itheigovernment
,tariffsiincreasei_____________________iandidecreasei_____________
________i-iCorrectiAnswer-
domesticiproduction,idomesticiconsumption
airestrictionionitradeiwastesi__________________iandicreatesi_______
____________ifromitradei-iCorrectiAnswer-resources,ilostigains
3iconditionsiwhyiaifreeimarketiisiefficienti-iCorrectiAnswer-
1)isupplyiofigoodsiisiboughtibyibuyersiwithitheihighestiwillingnessitoipay
2)isupplyiofigoodsiisisoldibyitheisellersiwithitheilowesticosts
3)ibetweenibuyersiandisellers,ithereiareinoiunexploitedigainsifromitrade
iorianyiwastefulitrades
tariffsireducei_________ibecauseitheisupplyiofigoodsiisinoilongerisoldiby
itheisellersiwithithei___________________________ i-iCorrectiAnswer-
efficiency,ilowesticosts
theimorei__________itheimarket,itheimoreitheyicaniescapeitaxesi-
iCorrectiAnswer-elastic
theimorei______________itheimarket,itheimoreitheyiareiburdenedibyit
axesi-iCorrectiAnswer-inelastic
, theioptimalitariffibalancesiincreaseiini______________iwithiincreaseiini
____________i-iCorrectiAnswer-deadweightiloss,irevenues
socialicosti-iCorrectiAnswer-privateicosti+iexternalicost
externalicosti-iCorrectiAnswer-
aicostithatiisipaidinotibyiconsumersioriproducers,ibut
byibystandersitoitheitransaction
i
wheniexternalitiesiareisignificant,i-iCorrectiAnswer-marketsiworkiless
socialisurplusi-iCorrectiAnswer-
consumerisurplusi+iproducerisurplusi+ieveryoneielse'sisurplus
marketsiwithiexternalitiesiDOiNOTi-iCorrectiAnswer-
maximizeisocialisurplus
marketiequilibriumi-iCorrectiAnswer-
maximizesiconsumeriplusiproducerisurplus
efficientiequilibriumi-iCorrectiAnswer-
theipriceiandiquantityithatimaximizesisocialisurplus
wheniexternalicostsiareisignificant,i-iCorrectiAnswer-outputiisitooihigh
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