The University of Adelaide - ECON 7200quiz 4. Graded A

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An example of a legally required minimum price control (price floor) is: The effect of Japan's price floor on rice is to: Refer to Figure 11.2 for the following question(s). Figure 1... 1.2 The Market for Paper. Suppose there are several paper mills producing paper for a market. These mills, located upstream from a fishing town, discharge a large amount of waste into the river. The waste material affects the number of fish in the river and the use of the river for recreational purposes. Refer to Figure 11.2. Why is there a deadweight loss? Refer to Figure 11.2. What is the deadweight loss from producing at the market equilibrium? A price floor invariably creates a surplus of the commodity affected, which means: Which of these statements is incorrect? In markets with asymmetric information: Refer to Figure 5.5 for the following question(s). Figure 5.5 The market for cigarettes. The government plans to impose a per unit tax in this market. Refer to Figure 5.5. How much of the tax is paid by buyers? Refer to Figure 5.5. How much of the tax is paid by producers? Refer to Figure 5.5. As a result of the tax, is there a loss in producer surplus? Under a rent control law, the quantity supplied of apartments decreases because: The Coase theorem suggests that externalities usually arise because: Which type of protection does Australian law grant the creator of a book, film or piece of music? If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost then: If the current market price of beer is $10 per six-pack and a price floor of $12 per six-pack is imposed, then: Which of the following is correct about a sales tax incidence? People who are able to rent apartments benefit from rent controls because: The minimum wage law has which of the following effects? Refer to Figure 5.4. What is the area that represents consumer surplus after the imposition of the ceiling? Refer to Figure 5.4. What is the area that represents the producer surplus after the imposition of the ceiling? Refer to Figure 5.4. What area represents the deadweight loss after the imposition of the ceiling? Price ceilings invariably create shortages, which means: Issuing marketable emission allowance permits to polluting firms: Some consumers lobby the government to convince law makers to impose price ceilings, so that they can: With a price ceiling, what creates a deadweight loss? The European Union's and United States' protection and support for their own farmers, through mechanisms such as price floors, harms farmers in developing countries due to which effect felt by farmers in developing countries? After a city imposes a rent control law: Refer to Figure 11.4 for the following question(s). Figure 11.4 Consider a chemical plant that discharges toxic fumes over a nearby community. To reduce the emissions of toxic fumes the firm can install pollution abatement devices. This figure shows the marginal benefit and the marginal cost from reducing the toxic fumes emissions. Refer to Figure 11.4. Suppose the emissions reduction target is currently established at 8 million tonnes. What is the area that represents the cost of eliminating an additional 1 million tonnes? If the current market price for a particular book is $30 a unit and a price ceiling is imposed at $20 per book, then: Which of the following is not an example of rent-seeking behaviour? The problem that exists before an insurance policy transaction is: An example of a price ceiling would be: The problem that can develop at the time of an insurance policy transaction is: Refer to Figure 11.3 for the following question(s). Refer to Figure 11.3. Why is there a deadweight loss? Which of the following results from government intervention in the free market? If a tax is imposed on the producer: Which of the following is true when a negative external effect creates a deadweight loss? Which of the following is a characteristic of a contestable market? The free market fails to provide public goods because: Which of the following would you expect to occur as the result of a price ceiling in the apartment rental market? In a city with rent controls on apartments: What causes producers to earn more income under a price floor even though less is produced? The problem that can develop after an insurance policy transaction is: The European Union, the USA and Japan all use price floors on their agricultural products. The effect is to: Among the impacts of the minimum wage is that: The effect of a government tax on a good or service is: Price ceilings in the housing rental market are: A positive externality causes: The private interest theory of government regulation argues that regulations are implemented to satisfy the demands of: Assume that air pollution from a copper smelter imposes external costs on people who live near the smelter. If the victims of the pollution could not legally enforce the right of their property not to be damaged, the amount of pollution reduction would be: [Show More]

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