Microeconomics

Question 1

Tax inelastic demand

Answer 1

Question 2

Tax elastic demand

Answer 2

Question 3

normal subsidy

Answer 3

Question 4

Inelastic subsidy

Answer 4

Question 5

Elastic subsidy

Answer 5

Question 6

Specific tax

Answer 6

Question 7

Ad Valorem Tax

Answer 7

Question 8

Consumer/Producer surplus

Answer 8

Question 9

Excess demand

Answer 9

`

Question 10

Excess Supply

Answer 10

Question 11

Negative Production Externality

Answer 11

Question 12

Positive Consumption Externality

Answer 12

Question 13

PPF

Answer 13

Question 14

Point A

Answer 14

Where firms aim to produce, this possible and efficient.

Question 15

Point B

Answer 15

Is possible but inefficient, as they are producing within the curve so not maximising output.

Question 16

Point C

Answer 16

Unobtainable production, because it is beyond the PPF so they don’t have enough resources/technology to produce there.

Question 17

Point D

Answer 17

Only production of consumer goods

Question 18

Point E

Answer 18

Only production of capital goods

Question 19

Indirect Tax Externality

Answer 19

Question 20

Subsidy Externality

Answer 20

Question 21

Maximum Price

Answer 21

Question 22

Minimum Price

Answer 22

Question 23

MES

Answer 23

Question 24

Monopolistic SR and LR

Answer 24

Question 25

Kinked Demand Curve

Answer 25

Question 26

Monopoly

Answer 26

Question 27

Third Price Discrimination

Answer 27

Question 28

Natural Monopoly

Answer 28

Question 29

Monopsony

Answer 29