- 7.1: Explain how buyers willingness to pay, consumersurplus, and the dem...
- 7.2: Explain how sellers costs, producer surplus,and the supply curve ar...
- 7.3: In a supply-and-demand diagram, show producerand consumer surplus i...
- 7.4: What is efficiency? Is it the only goal ofeconomic policymakers?
- 7.5: What does the invisible hand do?
- 7.6: Name two types of market failure. Explainwhy each may cause market ...
- 7.7: The cost of producing flat-screen TVs has fallenover the past decad...
- 7.8: There are four consumers willing to pay thefollowing amounts for ha...
- 7.9: Suppose a technological advance reduces thecost of making computers...
- 7.10: A friend of yours is considering two cell phoneservice providers. P...
- 7.11: Consider how health insurance affects thequantity of healthcare ser...
Solutions for Chapter 7: Consumers, Producers, and the Effi ciency of Markets
Full solutions for Principles of Macroeconomics | 6th Edition
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
the ability to produce a good using fewer inputs than another producer
the equipment and structures used to produce goods and services
a government regulation specifying a minimum amount of bank capital
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
the value of everything a seller must give up to produce a good
cross-price elasticity of demand
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
goods produced domestically and sold abroad
goods produced abroad and sold domestically
a curve that shows consumption bundles that give the consumer the same level of satisfaction
the percentage change in the price index from the preceding period
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
whatever must be given up to obtain some item
a curve that shows the short-run trade-off between inflation and unemployment
total revenue minus total cost
a situation in which quantity demanded is greater than quantity supplied
a graph of the relationship between the price of a good and the quantity supplied
a situation in which quantity supplied is greater than quantity demanded