AP Microeconomics

8 Moe (S) G 10 What is the socially optimal quantity and price level in this market? 0 15, $17.50 0 Indeterminate Which of the following scenarios best exemplifies a non-excludable and rivalrous good? 0 A river in a state where people can fish 0 A wireless internet service without a password 0 A public radio broadcast 0 An online newspaper requiring a subscription OA pair of shoes made by a popular name brand Advanced research has been identied as an area in which the private market inadequately incentivizes production due to the lack of exclusion from its benefits. Which of the following could most practically correct for this? 0 Private provision 0 Environmental deregulation O Strict enforcement of property rights 0 Per-unit subsidy 0 Ensure property rights are not transferable A per-unit tax on a good with relatively elastic supply will result in 0 more deadweight loss than if demand were elastic 0 less tax revenue than if demand were elastic O a lower tax burden on consumers than on producers O a tax burden that is equally distributed between consumers and producers S=MSC=MPC Price ($) P, P, + - - MSB D=MPB - - - - - - - - Quantity Q1 Q2 Q3Which of the following identifies the socially optimal output and price level? OP1 and Q1 OP1 and Q3 OP2 and Q2 OP2 and Q3 OP2 and Q4\fAssume that the market shown is perfectly competitive with no externalities. If the production output is 15,000 units, then 0 the market is allocatively efficient O deadweight loss is being minimized O deadweight loss is being maximized 0 consumer and producer surplus are maximized Which of the following is a reason for increased income inequality? 0 There is a decrease in the productive capacity of capital so that wages and salaries are instead paid to an improving labor force. 0 Taxes on earnings are collected each year, and the amount per worker is based on a progressive calculation. 0 Market wages are rising, and so the unemployed are incentivized to find a job. 0 People in a society do not begin with the same human capital, social capital, or bargaining power. 0 The structure of the labor union is reorganized such that their bargaining power is increased significantly. lf Country S has greater income inequality than Country T, which of the following must be true? 0 Country S will have greater wealth overall. 0 Country T will have greater wealth overall. 0 Country S will have a higher Gini coefficient than Country T. 0 Country S will have a lower Gini coefficient than Country T. 0 Country S will have more people in poverty than Country T. \fWhat is the value of the producer surplus after the tax in this market? O$180 0 $360 0 $540 0 $720 A bicycle taxi in the historic district of a city has room for one seat. available for anyone to rent. What type of good best describes this taxi seat? 0 Public good 0 Private good 0 Survival good 0 Artificially scarce good 0 Common pool resource