Microeconomics?

Question

1.a competitive market with flexible prices and many buyers and sellers will:

a.eliminate surpluses

b.eliminate shortages

c.reach an equilibrium where the market has no surpluses or shortages

d.accomplish all of the above

2.the incidence of a tax:

a.is a measure of the revenue the government receives from the tax

b.refers to who writes the check to the government

c.refers to who in reality pays the tax to the government

d.is a measure of the deadweight loss from the tax

3.the difference between the demand price and the supply price at the quota limit is:

a.the quota rent

b.the rend received by landlords who own rent-controlled apartment

c.the opportunity cost of using of buying a good, subject to an import quota

d.all of the above

Answer 1

1 c

2 a

3 d