Steve owns a bike store. His total costs are $1.2 million per year, and his variable costs are $750,000 per year. This means that his fixed costs are:

the government would collect revenue from the taxrevenues for apple growers would decrease

producer surplus would decrease

consumer surplus would increase

the price of apples would increase and fewer apples would be purchased

Flag question: Question 2Question 21 pts

Nita is a devoted Coca-Cola consumer, whereas Becky can drink either Coca-Cola or Pepsi products. Nita’s demand for Coca-Cola will be relatively more _______ , while Becky’s demand will be relatively more _________ .

Group of answer choices

elastic; inelasticunitary elastic; inelastic

unrelated to price; elastic

perfectly elastic; elastic

inelastic; elastic

Flag question: Question 3Question 31 pts

Buyer	Willingness to Buy
George	$25.00
William	$15.00
Sam	$7.50

Seller	Willingness to Sell
Cinépolis	$21.50
Edwards	$12.50
Regal	$12.00

Mary is a consumer who won the PowerBall lotto last month. She has decided she wants to see a movie in the theaters and wants to pay exactly $20.00 for a ticket. Which movie theaters will fulfill her request (in other words, which theaters will sell Mary a ticket at $20.00)?

Group of answer choices

Cinépolis and RegalCinépolis

Edwards and Regal

Edwards

Flag question: Question 4Question 41 pts

Producer surplus is the difference between:

Group of answer choices

supply and demandthe price paid for a good and the amount of the good produced

the willingness to pay for a good and the willingness to sell a good

the willingness to pay for a good and the amount that is paid to get it

the price the producer receives and the willingness to sell a good

Flag question: Question 5Question 51 pts

Which of the following statements is concerned with equity rather than efficiency?

Group of answer choices

Excise taxes tend to raise prices for consumers and reduce sales for firmsTax rates on the wealthy are too low and should be raised

The incidence of a tax does not depend on who actually pays it

Taxes generate revenues that governments spend on services

Almost all taxes create some amount of deadweight loss

Flag question: Question 6Question 61 pts

Questions about the equity of a tax are concerned mostly with:

Group of answer choices

deadweight losselasticity

efficiency

tax revenue

fairness

Flag question: Question 7Question 71 pts

A positive externality exists whenever:

Group of answer choices

production of a good has no social benefitproduction of a good has no social cost

production of a good creates an external benefit

production of a good creates an external cost

there are no internal costs

Flag question: Question 8Question 81 pts

The costs of a market activity paid for by an individual NOT engaged in the market activity are:

Group of answer choices

internal costscommon costs

social costs

free-rider costs

external costs

Flag question: Question 9Question 91 pts

The tragedy of the commons occurs because the good being produced is:

Group of answer choices

non-rival and non-excludablerival and non-excludable

rival and excludable

non-rival

Flag question: Question 10Question 101 pts

If there are gains from specialization in a workplace, hiring another employee means that the marginal product of labor will:

Group of answer choices

be negativebe 0 (zero)

increase

decrease

remain the same

Flag question: Question 11Question 111 pts

Steve owns a bike store. His total costs are $1.2 million per year, and his variable costs are $750,000 per year. This means that his fixed costs are:

Group of answer choices

$300,000$1.2 million

$750,000

$450,000

Flag question: Question 12Question 121 pts

In economics, we assume that firms make decisions in order to:

Group of answer choices

evade taxeslobby officials

protect the environment

minimize revenues

maximize profi