Accounting

WEEK 5 Economic Efficiency, Government value pass along and Taxes First, answer these questions-: Question 1: If the food securities industry price is $5, this mover all consumers dedicate $5 for the quantity of easilys or serve they want at that price. This means, consumers induct valued those goods and function at $5 each. 1. True 2. simulated Question 2: Free grocery stores that is, when there ar lots of buyers and sellers interacting freely to snuff it equilibrium prices constantly have the best outcomes. 1. Yes, they are perpetually efficient and good 2. Yes, they are always equitable 3. No, they may be efficient but not inevitably equitable 4. No, they may be equitable but not inescapably efficient Question 3: When Governments intervene in the market they withdraw the market more efficient 1. True 2. False ------------------------------------------------- Learning objectives: By the end of this workweeks work, you should be able to-: 1. apologise and calculate consumer and maker surplus 2. Explain the efficient market equilibrium 3. Identify the conditions under which market equilibrium will be efficient 4. Discuss the power of non-price rationing mechanisms 5. Discuss surplus-enhancing transactions in markets 6.

Explain how cleft affects the way in which the burden of a per-unit tax is divided up up amongst buyers and sellers 7. Explain how elasticity affects the size of the deadweight outrage created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and OBrien (2011) Microeconomics, second edition, Pearson is required reading. 1. Co! nsumer surplus The difference between the highest price a consumer is ordain to pay for a good or service, and the price they genuinely pay. For example, you are willing to pay $90 for a unseasoned Xbox game, but it is selling for $80. As the market price is on a lower al-Qaida that price, the consumers can be said to have benefited they have accredited a surplus. The...If you want to get a hop on essay, order it on our website: OrderEssay.net

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