POST ECO202 MIDTERM EXAM

A group of buyers and sellers of a particular good or service is called a(n)

In a competitive market, each seller has limited control over the price of his product because

If a firm is a price taker, it operates in a

The line that relates the price of a good and the quantity demanded of that good is called the demand

The price elasticity of demand for a good measures the willingness of

The case of perfectly elastic demand is illustrated by a demand curve that is

Consumer surplus

The marginal seller is the seller who

At the equilibrium price of a good, the good will be purchased by those buyers who

Market power and externalities are examples of

The Social Security tax is a tax on

A logical starting point from which the study of international trade begins is

Which of the following is not an important question for economic policy raised by the experience of the textile industry?

An externality is an example of

A cost imposed on someone who is neither the consumer nor the producer is called a

Research into new technologies provides a

Externalities can be corrected by each of the following except

The Golden Rule is an example of a private solution for

That some firms are engaged in more than one type of business is explained, in some cases, by

A free rider is a person who

The largest source of revenue for the federal government is the

The U.S. federal government finances budget deficits by

The theory that the wealthy should contribute more to police protection than the poor because they have more to protect is based on

The argument that each person should pay taxes according to how well the individual can shoulder the burden is called

The notion that similar taxpayers should pay similar amounts of taxes is known as