econ final 3

  1. Do all consumers in a competitive market enjoy the same amount of consumer​ surplus?
    ​No, since considerable variation exists among consumers in terms of tastes and incomes.
  2. What is the difference between accounting profit and economic​ profit?
    Economic profit subtracts both explicit and implicit costs from total​ revenue, while accounting profit only subtracts explicit costs.
  3. Is it possible for accounting profit to be positive and economic profit to be​ negative?
    ​Yes, this could occur if explicit costs were modest and implicit costs were high.
  4. Under which of the following examples is it likely that the accounting profit is positive and the economic profit is​ negative?
    if you use a diamond mine as a tourist
  5. Which of the following statements differentiates between a shortage and a​ surplus?
    A shortage occurs when quantity demanded exceeds quantity​ supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.
  6. As a result, the US production possibiloittes curve would be ​____________.
    shift inward
  7. The Coase Theorem states that​ ____________.
    private bargaining will result in an efficient allocation of resources.
  8. What is the intent of a Pigouvian​ tax?
    To induce producers of a negative externality to reduce production to the socially optimal level.
  9. will provide the display on his or her own
    no citizen
  10. _____ will vote in favor of the display.
    one person
  11. In this​ case, rhinos are best categorized as​ ____________.
    common pool resources.
Card Set
econ final 3