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WorksheetsG8 Units 4 and 5 review
Total questions: 30
Worksheet time: 23mins
What is a Price Ceiling?
What is a Price Floor?
What is a per-unit tax?
What is a subsidy?
A per-unit subsidy will shift ______ to the ____
supply, left
supply, right
demand, right
demand, left
A per-unit tax will shift ______ to the ____
supply, left
supply, right
demand, right
demand, left
What area represents Total Tax Revenue?
RTS
S
TW
SU
A price ceiling goes _____ the equilibrium, and creates a _______
below, shortage
above, shortage
above, surplus
below, surplus
A price floor goes _____ the equilibrium, and creates a _______
below, shortage
above, shortage
above, surplus
below, surplus
If the price of a good increases, then consumer surplus (CS) will:
Increase
Decrease
No Change
Become infinity
If the price of a good increases, then Producer Surplus (PS) will:
Increase
Decrease
No Change
Become zero
We can determine the shortage in a market because:
Demand is higher than supply
Quantity Supplied is equal to quantity Demanded
Quantity Supplied is higher than quantity Demanded
Quantity Demanded is higher than quantity Supplied
We can determine the surplus in a market because:
Demand is higher than supply
Quantity Supplied is equal to quantity Demanded
Quantity Supplied is higher than quantity Demanded
Quantity Demanded is higher than quantity Supplied
Calculate Consumer Surplus (CS) at the equilibrium
400
200
600
1,000
Calculate Producer Surplus (PS) after the tax
400
200
600
1,000
Calculate the Deadweight Loss (DWL) after the tax
400
200
600
1,000
Calculate the Total Expenditure (Total Spending) from consumers after the tax
400
800
1,200
12
Calculate the Total Revenue from Firms after the tax
400
800
1,200
8
Calculate Producer Surplus (PS) after an effective Price Ceiling at $400
40,000
90,000
4,000
30,000
Calculate Deadweight Loss (DWL) after an effective Price Ceiling of $400.
40,000
9,000
20,000
30,000
Calculate Deadweight Loss (DWL) after an effective Price Floor at $32
360
540
108
54
Calculate Producer Surplus (PS) after an effective Price Ceiling at $10
200
500
50
100
Calculate Deadweight Loss (DWL) after an effective Price Ceiling at $10
150
300
500
250
If there is a Price Ceiling above the equilibrium, this will cause
Demand to increase
Demand to decrease
Consumer Surplus to Increase
No change in the market equilibrium
If there is a Price Floor below the equilibrium, this will cause
Supply to increase
Supply to decrease
Producer Surplus to Increase
No change in the market equilibrium
What is the impact of a price ceiling on the market equilibrium?
It creates a shortage
It creates a surplus
It has no impact
It increases demand
Define the concept of Total Expenditure in the context of consumer spending.
It is the total amount of money spent by consumers on a particular product or service
It is the total amount of money earned by consumers from selling a particular product or service
It is the total amount of money spent by producers on a particular product or service
It is the total amount of money earned by producers from selling a particular product or service
Explain the impact of a per-unit subsidy on the supply curve.
It shifts the supply curve to the left
It shifts the supply curve to the right
It has no impact on the supply curve
It increases the price of the product
If Yin's willingness to pay for a Genshin Impact skin is 50 RMB and the Price is 60 RMB, how much will be his Consumer Surplus?
10 RMB
- 10 RMB
0 RMB
50 RMB
If Melody's willingness to sell a cake is $50 and the market price is $60, then Melody's Producer Surplus will be:
$10
- $10
$0
$60
