AP Micro Unit 6 Review

Front

Why are antitrust laws used by governments?

Back

To prevent monopolies from forming and to ensure fair market standards

Front

A good that is excludable to other consumers and rivals is known as a

Back

private good

Front

If the US government increases a tax to help redistribute income from the wealthy to the poor, it is following a

Back

Progressive tax system

Front

A negative externality will exist when

Back

Spillover costs are given to others not directly involved in the consumption or production of a service

Front

A positive externality will exist when

Back

The production of a good or service creates a spillover beneift

Front

If firms overproduce a good or service and charge a price that is too low, it is likely that

Back

A negative externality exists

Front

A coal company has had a record breaking quarter while operating in Indiana. Which of the following would be an example of a negative externality of production? The company deciding to hire additional employees, The company's factories causing environmental harm, The company paying higher taxes because of an additional revenue, The company paying its suppliers more because of higher demand

Back

The company's factories causing environmental harm

Front

What can the government do to ensure that Tera produces at the allocatively efficient quantity for the permanent vaccine for the common flu? Options: Regulate a minimum amount of vaccines the company needs to provide, Implement a per-unit tax, Implement a lump-sum tax, Provide a lump-sum subsidy

Back

Provide a lump-sum subsidy

Front

Which type of taxes takes a larger percent of income from high income groups?

Back

Progressive Taxes

Front

Which type of taxes takes a larger percentage from low income groups?

Back

Regressive Taxes