B. there is a surplus and the price will rise

C. there is a shortage and the price will rise

D. The quantity demanded is equal to the quantity supplied and the price remains unchanged

E. there is a shortage and the price will fall

A. there is a surplus and the price will fall

B. there is a shortage and the price will rise

C. there is surplus and the price will rise

E. there is a shortage and the price will fall

A. The price elasticity of supply is price elastic

C. The price elasticity of supply is perfectly elastic

D. The price elasticity of supply is price inelastic

A. reduce, increase

C. increase, increase

D. reduce , reduce

A. social costs, social benefit

B. private costs, private benefits

C. insiders, outsiders

B. Decrease equilibrium price and increase quantity

C. Increase equilibrium price and decrease quantity

D. increase equilibrium price and quantity

B. only one seller.

C. firms that set their own prices

D. at least a few sellers.

B. transactions are not recorded in the GDP figures.

C. illegal substances are sold

D. buyers and/or sellers are not paying taxes as they should

A. monopoly

C. oligopoly

D. monopolistic competition

B. occurs when taxes cause prices to increase but wages to fall

C. is the ultimate distribution of a taxs burden

D. is the way in which a tax is structured

B. taxation

C. imperfect competition

D. externalities

E. missing markets

B. a players best strategy when moving first

C. a losing strategy

D. a wining strategy

A. unemployment is high

C. the distribution is inequitable

D. economic growth is low

A. Both the demand for lettuce will decrease and the equilibrium price and quantity of salad dressing will fall

B. The supply of lettuce will decrease

C. The demand for lettuce will decrease

E. The equilibrium price and quantity of salad dressing will rise

B. Lead to an extension of supply

C. Lead to a movement along the supply curve

D. Shift the demand curve

A. risk aversion

C. moral hazard

D. a poor gamble

A. The government taxes a product to a raise its price

B. The government sells assets to a the private sector

C. The government bans a product

A. Increase equilibrium price and decrease quantity

B. Increase equilibrium price and quantity

C. Decrease equilibrium price and quantity

A. The profits made by a firm

B. The cost of providing a unit

C. The price consumers are willing to pray for a unit

A. how many producers there are:

B. who is legally obliged to pay the tax

C. Whether there is perfect or imperfect information

B. Formative economic statement

C. Positive economic statement

D. Judicial economic statement

A. There is excess demand

C. There is excess equilibrium

D. There is equilibrium

A. Excess demand

B. A price increase

D. A price fall

B. decrease the quantity demanded for that good

C. decrease the demand for the good

D. increase the supply of that good

E. none of these answers

A. the quantity demanded is equal to the quantity supplied and the price remains unchanged

B. there is a surplus and the price will rise

D. there is a shortage and the price will fall

A. The impact on both price and quantity is ambiguous

B. Price will decrease, quantity is ambiguous.

C. price will increase, quantity will decrease

E. Price will increase, quantity will increase

A. equal, unequal

C. worse off; worse off

D. better off; better off

A. The social marginal benefits are higher than the private marginal benefits

B. A product is not provided in the free market

D. The social marginal cost equal the social marginal benefit

B. Producers are price takers

C. marginal costs and benefits are equal

D. prices equal marginal cost and benefit

E. consumers and producers face the same prices

A. Monopolies

B. Negative externalies

C. Oligopolies

A. Signal

C. Rationing device

D. Incentive

A. Exercise duty

B. Direct

C. Specific

A. increases the quantity supplied of that good

C. None of these answers

D. decreases the quantity demanded for that good

A. The price elasticity of supply is + 3

B. The price elasticity of supply is + 0.2

D. The price elasticity of supply is infinity

B. poor health, unnecessary

C. imperfect competition popular

D. inequality , a first best option

A. income elastic

B. income inelastic

C. Price elastic

A. There is an increase in the demand and supply of apples.

C. There is an increase in the demand for apples and a decrease in the supply of apples

D. There is an increase in the quantity demanded of apples and in the supply for apples

E. There is a decrease in the quantity demanded of apples and an increase in the supply for apples

A. A change in advertising

B. A change in income

C. A change in the number of buyers

A. some people cant count

B. some people may not be permanent resident

D. not all economic activity is legal

A. measure of the impact the tax has on employment and output

B. behaviour of shifting the tax to another party.

D. structure of the tax

A. The oligopolist believes that competitors will match price increase but not output increase

B. The oligopolist believes that competitors will match price increase but not output reduction

D. The oligopolist believes that competitors will match output increase but not output reduction

A. produce less at a lower price

B. produce more at a lower price

C. produce less at a lower price

A. shifts the demand curve

C. Leads to a contractions in supply

D. Leads to an extension of supply

A. Act as a signal

B. Act as a incentive

C. Act as a rationing device

A. the equilibrium quantity to rise and the equilibrium price to rise

B. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous

C. the equilibrium quantity to rise and the equilibrium price to remain constant

E. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.

A. supply exceeds demand

B. a surplus exists

D. there is perfectly inelastic demand for the good

A. An increase in supply

C. improvements in production technology

D. An fall in demand

A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic

C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.

D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change

A. cost-saving

B. research

C. technical advance

A. a decrease in the wage of workers employed to manufacture watches

C. an increase in the price of watches

D. a decrease in consumer incomes if watches are a normal good

E. a decrease in the price of watch batteries if watch batteries and watches are complements