Efficiency loss in elasticity and tax incidence can be considered as:

a Price Floor

b Dead Weight Loss

c Dependency

d Consumer Surplus

This situation occurs when a market is considered allocatively efficient when economic surplus is maximized:

a Social Surplus

b producer surplus

c surplus

d total surplus

In what situation is a company contributing to the demand of an item?

a. When there is sufficient allocation of supply

b When you purchase an item

c When you search for a job

d When there is surplus in the market

Which option best describes allocatively inefficiency in a market?

a Allocatively inefficiency occurs when there is disequilibrium in the market.

b Allocatively inefficiency occurs when marginal cost of production is greater than marginal benefit.

c Allocatively inefficiency occurs when marginal cost of production is less than marginal benefit.

d Allocatively inefficiency occurs when there is neither shortages or surpluses.

Spare production capacity, stocks of finished products and components, ease and cost of factor substitution, and production speed are:

a Determinants of price elasticity of supply

b Determinants of cross price elasticity of demand

c Determinants of elasticity of supply

d Determinants of income elasticity of demand

Which of the following are included in the changes in equilibrium price and quantity four step process?

[]Decide whether the effect on demand and supply cause the curve to shift to the right or to the left.

[]Identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.

[]Draw a demand and supply model representing the situation before the economic event took place.

[]Decide whether the economic event being analyzed falls under a macroeconomic framework.

The formula for calculating the income elasticity of demand is:

a Percentage change in quantity demanded divided by percentage change in price

b New quantity demanded minus old quantity demanded divided by old quantity demand divided by new income minus old income divided by old income

c Percentage change in quantity demanded divided by percentage change in price of other related goods

d Percentage change in quantity demanded divided by percentage change in income elasticity of demand for normal goods

In what situation is a company contributing to the supply of labor?

a When there is sufficient allocation of supply

b When you purchase an item

c When you search for a job

d When there is surplus in the market

Determinant of Cross Price Elasticity of Demand are:

a Time factor and wealth distribution in the society

b Substitutability and dependence

c Nature of the product on sale and versatility of the goods on offer

d A country's economic status and demonstration effect