Economics Quiz

Economic inefficiency caused by market distortions is called what?

• Producer surplus

• Deadweight loss

• Positive externality

• Market equilibrium

Air pollution from factories is an example of what type of externality?

• Positive production externality

• Negative production externality

• Positive consumption externality

• Negative consumption externality

What is the difference between what the consumer is willing to pay and what they actually pay called?

• Consumer surplus

• Producer surplus

• Market price

• Equilibrium price

The Coase Theorem suggests that it is possible for private parties to solve the problem of what on their own?

• Market failures

• Externalities

• Price fluctuations

• Supply shortages

What describes an economy that is going great, where stocks are rising?

• Bear market

• Bull market

• Stagnant market

• Recession

How is elasticity defined in terms of demand and supply?

• The change in demand due to income changes

• The impact of price change on quantity demanded or supplied

• The change in supply due to technology changes

• The impact of consumer preferences on demand

Goods and services a country produces and sells to other countries are called what?

• Imports

• Exports

• Domestic goods

• Foreign goods

At a price of $5, what is the producer surplus for 2 candles?

• $1

• $2

• $3

• $4

What type of externality is associated with subsidies for park development?

• Positive externality

• Negative externality

• Neutral externality

• Mixed externality

What is a Pigouvian Tax intended to do?

• Decrease production costs

• Increase production costs

• Eliminate production costs

• Ignore production costs