ECON 202- OLE MISS- EXAM 2 (CH 6-
11) QUESTIONS & CORRECT
ANSWERS 100%
the legal maximum on the price at which a good can be sold - Correct Answer ✔✔ Price
ceiling
a legal minimum on the price at which a good can be sold - Correct Answer ✔✔ price
floor
the manner in which the burden of a tax is shared among participants in a market -
Correct Answer ✔✔ tax incidence
the study of how the allocation of resources affects economic well-being - Correct
Answer ✔✔ Welfare economics
The maximum amount that a buyer will pay for a good - Correct Answer ✔✔ Willingness
to pay
The amount a buyer is willing to pay for a good minus the amount the buyer actually
pays for it - Correct Answer ✔✔ consumer surplus
the buyer who would leave the market first if the price were any higher - Correct Answer
✔✔ marginal buyer
the value of everything a seller must give up to produce a good - Correct Answer ✔✔
cost
the amount a seller is paid for a good minus the sellers cost of providing it - Correct
Answer ✔✔ Producer surplus
the seller who would leave the market first if the price were any lower - Correct Answer
✔✔ marginal seller
the property of a resource allocation of maximizing the total surplus received by all
members of society - Correct Answer ✔✔ efficiency
the property of distributing economic prosperity uniformly among the members of
society - Correct Answer ✔✔ equality
the fall in total surplus that results from a market distortion, such as a tax - Correct
Answer ✔✔ deadweight loss
11) QUESTIONS & CORRECT
ANSWERS 100%
the legal maximum on the price at which a good can be sold - Correct Answer ✔✔ Price
ceiling
a legal minimum on the price at which a good can be sold - Correct Answer ✔✔ price
floor
the manner in which the burden of a tax is shared among participants in a market -
Correct Answer ✔✔ tax incidence
the study of how the allocation of resources affects economic well-being - Correct
Answer ✔✔ Welfare economics
The maximum amount that a buyer will pay for a good - Correct Answer ✔✔ Willingness
to pay
The amount a buyer is willing to pay for a good minus the amount the buyer actually
pays for it - Correct Answer ✔✔ consumer surplus
the buyer who would leave the market first if the price were any higher - Correct Answer
✔✔ marginal buyer
the value of everything a seller must give up to produce a good - Correct Answer ✔✔
cost
the amount a seller is paid for a good minus the sellers cost of providing it - Correct
Answer ✔✔ Producer surplus
the seller who would leave the market first if the price were any lower - Correct Answer
✔✔ marginal seller
the property of a resource allocation of maximizing the total surplus received by all
members of society - Correct Answer ✔✔ efficiency
the property of distributing economic prosperity uniformly among the members of
society - Correct Answer ✔✔ equality
the fall in total surplus that results from a market distortion, such as a tax - Correct
Answer ✔✔ deadweight loss
