Chap 7
Where is consumer surplus on a graph in terms of the curves? (demand, supply, price)
What is below the demand curve, above the price
What is a mandatory contribution to the government called?
What is a tax?
What is a negative externality?
What is a cost imposed on a 3rd party?
What is the formula for profit?
What is total revenue minus total costs?
What are examples of positive and negative externalities? (One of each)
Can be anything
Where is the market most effiecient?
What is at equilibrium?
Approximately how large would the deadweight loss be if a tax was imposed on cruise line tickets?
What is relatively large?
What is a benefit received by a 3rd party who did not pay for the good?
What is the difference between implicit and explicit costs?
What is implicit costs include opportunity costs, while explicit costs are solely the outflow of money?
Is tax revenue included in total surplus? Why or why not?
Where on a graph is producer surplus?
What is above supply, below price?
When tax on a good gradually increases, what will happen to tax revenue?
What is first rise and then fall?
What is thr private cost curve also referred as?
What is the supply curve?
What is the difference between accounting profit and economic profit?
What is accounting profit only factors in explicit costs and economic profit accounts for implicit costs as well?
What is the formula for marginal cost?
What is change in total cost divided by change in total product?
Where is total surplus maximized?
What is at equilibrium?
What is deadweight loss?
What is the loss that the company incurs due to buyers and sellers leaving the market?
What is the supply of pollution permits? (elastic, inelastic, Explain)
What is perfectly inelastic?
What is the concept of diminishing marginal product?
What is the concept that after a certain amount of inputs, the marginal product will start to decrease?
What is economies of scale?
What is when there is a larger quantity produced, the average total cost will go down?
How do you calculate consumer surplus?
Explain it out loud
Deadweight loss is greatest when?
What is when both supply and demand are elastic?
What is the point that intersects with the social cost and the private benefit curve called?
What is the socially optimal point?
What happens to inputs in the long run?
What is that all inputs are variable?
Which cost is constant in total and which cost is constant per unit?
What is fixed costs and variable costs?