ECON 2200

A demand curve illustrates the

A demand curve illustrates the marginal benefit for consuming one more unit

Cotton is a normal good. All else equal, when the economy went into recessionary periods during the early 1800s, the demand for cotton

Decreased, decreasing producer surplus in the market for cotton

During the American Revolutionary War, the British counterfeited large numbers of Continentals.  All else equal, this caused the equilibrium price-level for Continentals to

Increase, and the equilibrium quantity of Continentals to increase

During the first period of colonization into America, most indentured servants were

a. male slaves

b. female slaves

c. children slaves

d. None of the above

None of the above

Consumer surplus in the market above, with no tax, equals

area “a + b + c”

Producer surplus in the market above, with a per unit tax of P1 minus P3, equals

Area f

Given upward sloping supply and downward sloping demand, a $1 excise tax on any good or service causes the price buyers pay to increase by

less than $1

In a competitive labor market, if the wage is lower than the equilibrium wage,

a shortage of workers exists, and the wage must rise

Suppose that new discoveries of valuable resources in America increased the demand for indentured servants.  Holding cost of the voyage and other things the same, newly immigrating indentured servants' labor terms (years of service)

decrease

The Sugar Act of 1764 placed new excise taxes on wine in the colonies.  In the market for wine, this act caused consumer surplus to

decrease, and producer surplus to decrease

During the early 1800s, Federalist views

supported a strong, centralized government

During the early 1800s, the construction of canals caused the price that sellers received for goods to

increase, and total surplus in these markets to increase

Early during the Industrial Revolution, unskilled and skilled labor were complements of production.  All else equal, a decrease in the wages paid to unskilled labor caused the equilibrium wage for skilled labor to

increase

From 1818 to 1819, the Second Bank of the United States

pursued contractionary monetary policy, which led to the Panic of 1819

In the market for textiles, increased specialization from the Industrial Revolution caused consumer surplus to

Increase, and producer surplus to change uncertaintly

Before the Civil War, plantations were perfectly price discriminating monopsonies.  After the Civil War, they became one-wage monopsonies.  Total surplus in the market for labor

Decreased

Eli Whitney’s invention of the cotton gin, in the short run, caused consumer surplus in the market for slave labor to

Increase

Plantations' breeding of slaves increased the supply of labor.  Given perfect price discrimination by plantations, this increase in supply caused producer surplus to increase by

$0

Before the Civil War, plantation owners earned what area in economic welfare?

are a + b + c + d + e + f + g + h + i

Suppose the graph above depicts a one-wage monopsony after the Civil War, such as a textile mill in the South.  The firm pays a wage equal to

h + i

In the long run, technological advances that increase worker productivity cause the demand for labor to

change uncertaintly

Suppose a one-wage monopsony may sell its output for $2 each.  The profit maximizing quantity of labor that a one-wage monopsony hires equals

6

What consumer surplus does a perfectly price discriminating monopsony gain from only its 4th worker?

18

The invention of the steam boat caused the price that plantations received for cotton to

increase, causing the demand for slaves to increase

Which of the following temporarily resolved the issue of whether states joined the Union as free or slave?

The Compromise of 1820