What is excludability?
A.
the property of a good whereby a person can be prevented from using it.
B.
the property of a good whereby a person cannot be prevented from using it.
C.
the property of a good whereby one person’s use diminishes other people’s use
D.
the property of a good whereby one person’s use does not diminish other
people’s use
What are common resources?
A.
goods that are both excludable and rival in consumption
B.
goods that are neither excludable nor rival in consumption
C.
goods that are rival in consumption but not excludable
D.
goods that are excludable but not rival in consumption
What is rivalry in consumption?
A.
the property of a good whereby a person can be prevented from using it.
B.
the property of a good whereby a person cannot be prevented from using it.
C.
the property of a good whereby one person’s use diminishes other people’s use
D.
the property of a good whereby one person’s use does not diminish other
people’s use
What are public goods?
A.
goods that are both excludable and rival in consumption
B.
goods that are neither excludable nor rival in consumption
C.
goods that are rival in consumption but not excludable
D.
goods that are excludable but not rival in consumption
A Snickers bar is an example of a
A.
public good
B.
private good
C.
common resource
D.
club good
What is the definition of an externality?
A.
the property of a good whereby a person can be prevented from using it.
B.
a negative tariff
C.
government price ceiling
D.
a cost or benefit to a third party
How do you correct for a negative externality?
A.
impose a tariff
B.
provide a subsidy
C.
impose a price floor
D.
impose a tax
If my friend has the right to play his music loud, what can I do to make both
of us happier?
A.
call the police
B.
provide a subsidy
C.
pay him to wear earphones
D.
charge him a tax
How would an economist reduce congestion on the causeway to Bahrain?
A.
only allow white cars to use it
B.
charge people more to use it when it is busy
C.
build a new causeway
D.
subsidize traffic on the weekends
If you allow imports into Saudi Arabia, who will be happy?
A.
domestic buyers and domestic producers
B.
foreign buyers and domestic producers
C.
domestic buyers only
D.
domestic producers only
If you allow exports out of Saudi Arabia, who will be happy?
A.
domestic buyers and domestic producers
B.
foreign buyers and domestic producers
C.
domestic buyers only
D.
domestic producers only
If the current equilibrium price is 50 and the government imposes a price
ceiling of 60, what will happen?
A.
shortage
B.
surplus
C.
no change
D.
price will increase to 60
What will happen if the government increases the minimum wage for Saudis to
5000 SAR per month?
A.
Saudi unemployment will increase
B.
employees will be replaced by machines
C.
there will be deadweight losses.
D.
all of the above
If a new tax is imposed on car dealers in Saudi, who will actually pay the tax?
A.
buyers
B.
sellers
C.
both
D.
neither
Could the government raise the tax rate so high that tax revenue would
decrease?
A.
yes
B.
no
Where would a deadweight loss due to a tax be larger; cigarettes or snickers
bars?
A.
cigarettes
B.
snickers
Please
use the graph 1 to answer the next three questions. Assume that the government
imposes a price floor of 80 SAR
Will there be a shortage or surplus?
B.
surplus
18.
What is the size of the deadweight loss?
A.
90
B.
180
C.
120
D.
160
19.
Who will be happier?
A.
all buyers
B.
all sellers
C.
some buyers
D.
some sellers
Please
use the graph 2 to answer the next three questions. Assume that the government
imposes a price ceiling of 40 SAR
A.
2
B.
4
C.
6
D.
7
What is the size of the shortage?
A.
2
B.
4
C.
6
D.
7
How much was consumer surplus increased?
A.
35
B.
40
C.
45
D.
10
Please
use the graph 3 to answer the next three questions. Assume that the government
imposes a tax of 60 SAR
What will be the new price?
B.
70
C.
20
D.
80
How much tax revenue will the government collect?
A.
90
B.
100
C.
110
D.
120
What is the size of the deadweight loss?
A.
90
B.
100
C.
110
D.
120
Please
use the graph 4 to answer the next three questions. Assume that the government
provides a subsidy of 60 SAR
|
A.
free
B.
10
C.
20
D.
80
What will the sellers receive from each pizza sale?
A.
20
B.
60
C.
70
D.
80
How much will this subsidy program cost the government?
A.
240
B.
90
C.
120
D.
480
Please
use the graph 5 to answer the next three questions. Assume that the world price
is 80 and exports are allowed
How many pizzas will be
sold by domestic producers?
B. 5
C. 6
D. 8
How many domestic buyers will there be?
A. 2
B. 5
C. 6
D. 8
How much new value will be created?
A.
240
B.
90
C.
120
D.
480
Please
use the graph 6 to answer the next three questions. Assume that the world price
is 10 and importing is allowed
How many new domestic customers will there be?
6
|
A.
2
B.
4
C.
6
D.
8
How many domestic sellers will there be? Not included
A.
2
B.
4
C.
6
D.
8
How much new value will be created?
A.
160
B.
90
C.
120
D.
480
Please
use the graph 7 to answer the next three questions. Assume that the world price
is 10 and importing is allowed Also assume that a tariff of 20 is imposed.
|
A.
3
B.
5
C.
7
D.
9
How much will the government collect in tariff?
A.
40
B.
80
C.
120
D.
160
How much will the deadweight loss be?
A.
40
B.
80
C.
120
D.
160
Please
use the graph 8 to answer the next three questions. Assume that the government
would like the price of pizzas to be 10
|
How large will the subsidy per pizza need to be?
A.
40
B.
80
C.
90
D.
110
How much will this program cost the government?
A.
720
B.
810
C.
250
D.
160
How much will the deadweight loss be?
A.
40
B.
80
C.
120
D.
160
5
short answer questions. Each question is worth 4 points. 20 points potential
1.
Name a negative externality and explain why. Also explain how the government
could try to correct it.
Example - imposes a cost on a third party - tax or limit with coupons.
2. What type of good is the ring road and explain why.
Common resource when traffic is busy - non excludable but rival
Public Good when traffic is not busy - non excludable and non-rival
3.
Name four reasons for restricting imports
1. jobs
2. national security
3. infant industries
4. fairness
4.
Name four reasons for not restricting imports
1. lower cost
2. variety
4. competition
3. ideas
5.
Draw a graph with labels that shows the value of exporting. Please clearly
label the increase in producer surplus.
i would like to see my paper dr. even though i am getting all the right answer, i dont know why i got this grade.
ReplyDelete