ECON202 Microeconomics FINAL
EXAM (Exam 3) Colorado State
University fully solved 2025/2026
environmental protection:
market based vs command and control - correct answer ✔✔Market based consists of incentives
to reduce pollution such as pollution fines emissions tax. Command and control consists of laws
put in place by government
Macro instability - correct answer ✔✔Decrease in overall Q results in decrease in aggregate
supply and aggregate demand
Efficiency - correct answer ✔✔Maximizing total surplus
Consumer surplus - correct answer ✔✔Willingness to pay - price
Producer surplus - correct answer ✔✔Price - Willingness to accept
Deadweight loss - correct answer ✔✔Loss of economic efficiency when equilibrium is not
achieved
Principle of Equal Liberty - correct answer ✔✔Each person is to have an equal right to the most
extensive basic liberty compatible with a similar liberty for others
Difference Principle - correct answer ✔✔Social and economic inequalities are to be arranged so
that they are both:
1. Reasonably expected to be to everyone's advantage
EXAM (Exam 3) Colorado State
University fully solved 2025/2026
environmental protection:
market based vs command and control - correct answer ✔✔Market based consists of incentives
to reduce pollution such as pollution fines emissions tax. Command and control consists of laws
put in place by government
Macro instability - correct answer ✔✔Decrease in overall Q results in decrease in aggregate
supply and aggregate demand
Efficiency - correct answer ✔✔Maximizing total surplus
Consumer surplus - correct answer ✔✔Willingness to pay - price
Producer surplus - correct answer ✔✔Price - Willingness to accept
Deadweight loss - correct answer ✔✔Loss of economic efficiency when equilibrium is not
achieved
Principle of Equal Liberty - correct answer ✔✔Each person is to have an equal right to the most
extensive basic liberty compatible with a similar liberty for others
Difference Principle - correct answer ✔✔Social and economic inequalities are to be arranged so
that they are both:
1. Reasonably expected to be to everyone's advantage
