1. Which of the following statements is an example of a positive, as opposed to a normative statement a. Reducing air pollution decreases the number of days missed from school due to asthma. b. Americans deserve a cleaner environment. c. Making sure everyone has access to affordable healthcare will make our country stronger. d. Vaccines for COVID should be mandated at JCCC. 2. When taxes are increased a. The deadweight loss from a tax is not affected. b. The deadweight loss from a tax falls. c. The deadweight loss from a tax rises, d. It is unclear how this will affect deadweight loss. 3. Why do economists think it is better to tax gasoline instead of restaurants? a. Gasoline has more elastic demand, so the deadweight losses from a gas tax is smaller. b. Gasoline has less elastic demand, so the deadweight losses from a gas tax is smaller. C. Restaurants have less elastic demand, so the deadweight loss from a gas tax is smaller. d. The premise is false: economists think taxing restaurants is better than taxing gas. 20 4. Suppose the supply for a product increases, lowering equilibrium price and raising quantity. Which side of the market will enjoy an increase in economic surplus? a. Producer surplus will increase. b. Consumer surplus will increase. C. Both consumers and producers will enjoy an equal increase in surplus. d. Government revenue will increase. 5. When economists talk about economic welfare, they are usually talking about a. Government assistance programs like food stamps and Medicare. b. How buyers benefit more than sellers in most markets. C. The benefits to the government when a tax is imposed in a market d. How much buyers and sellers benefit from participating in a market. 6. Producer surplus is which of the following? a. The marginal benefit a consumer gets minus the price they have to pay for a good. b. The marginal cost a seller pays to produce minus the price of the good. C. The money sellers save by deciding to not produce too many goods. d. The price sellers receive minus the marginal cost of producing the good. 19 $21 5854 TX