ECON Chapter 21 & 22

According to the graph what is the excess supply?

Why does this excess supply become a burden for taxpayers?

Area d, they must pay for the government to purchase and store the good

According to the graph what is the change in consumer surplus when price rises form equilibrium to surplus price?

What is the change in producer surplus?

What is the government revenue?

What is the market welfare

- b - c

+ b + c + d

- f - c - d - g - i - j 

-  c - f - g - i - j

What are examples of market imperfection?

unethical behavior, monopsonistic labor market, political economy collective choice problems, public goods, common resources, externality effects

Give an example of each of these types of market imperfections

Non-excluded vs non-excludable

Non-rivalry

Which of these categories does public goods fall under?

Which does perfect competition/private goods fall under?

Roads are non-excluded from being used but not non-excludable because they can be excluding because you have to pay for tolls

Roads are non-rivalry because my use doesn’t prevent your use

Both

Neither 

Of undersupply, oversupply, and adequately supply what do each of the following usually do?

Private provision of a public good

An NGO supplying a public good

The government supplying a public good

undersupply,

adequately supply, fix free-riding and collective action problems

adequately supply

What are the ethical principles in economics?

loyalty, respect for authority, courage