What this deck covers
This deck focuses on Government Intervention In Different Market Structures, giving you a quick way to review the definitions, rules, and examples that matter most for AP Microeconomics.
AP Microeconomics Flashcards: Government Intervention In Different Market Structures
Study Government Intervention In Different Market Structures in AP Microeconomics with focused flashcards that help you recognize the idea, recall the key rule, and apply it in practice-style prompts.
AP Microeconomics
Government Intervention In Different Market Structures
0 mastered0 still learning
0% Complete
01
QUESTION
1/ 75
Identify the effect of negative externalities.
Tap card or press Space to flip
01
ANSWER
Overproduction and social costs. Private costs below social costs cause excess production.
How well did you know it?
Got it!
Still Learning
Card 1 / 75
Space to flip · ← / → to move · once flipped, → Got it · ← Still learning
How to use these flashcards
Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.
All flashcards
Flashcard 1: Identify the effect of negative externalities.
Answer: Overproduction and social costs. Private costs below social costs cause excess production.
Flashcard 2: What is the effect of tariffs on domestic consumers?
Answer: Decreases consumer surplus. Higher import prices hurt domestic buyers.
Flashcard 3: What is the effect of a quota?
Answer: Limits the quantity of a good that can be sold. Creates artificial scarcity by restricting supply.
Flashcard 4: Identify the main effect of tariffs.
Answer: Increases domestic prices of imported goods. Import taxes raise costs for foreign goods.
Flashcard 5: Identify a possible negative effect of price controls.
Answer: Market distortions and inefficiencies. Artificial prices create shortages or surpluses.
Flashcard 6: Identify the effect of a subsidy on producer surplus.
Answer: It increases producer surplus. Lower costs or higher prices benefit producers.
Flashcard 7: What is the effect of a tax on market equilibrium?
Answer: Raises equilibrium price, lowers quantity. Government levy shifts supply curve leftward.
Flashcard 8: Identify the main effect of tariffs.
Answer: Increases domestic prices of imported goods. Import taxes raise costs for foreign goods.
Flashcard 9: Identify the effect of positive externalities.
Answer: Underproduction and social benefits. Private benefits below social benefits cause insufficient production.
Flashcard 10: What is the main purpose of antitrust policy?
Answer: To prevent anti-competitive practices. Laws prevent monopolies and promote competition.
Flashcard 11: What is the effect of tariffs on domestic consumers?
Answer: Decreases consumer surplus. Higher import prices hurt domestic buyers.
Flashcard 12: What is a price floor?
Answer: A minimum legal price set above equilibrium. Prevents prices from falling below the set minimum.
Flashcard 13: What type of good is most affected by a subsidy?
Answer: Necessities with inelastic demand. Essential goods benefit most from cost reduction.
Flashcard 14: What effect does a tax have on supply?
Answer: It decreases supply, shifting the curve left. Higher production costs reduce willingness to supply.
Flashcard 15: Identify the effect of a tax on consumer surplus.
Answer: It decreases consumer surplus. Higher prices reduce consumer benefits from trade.
Flashcard 16: What is the result of correcting a positive externality?
Answer: Increase in the external benefit. Encouraging externality improves social welfare.
Flashcard 17: What is regulatory capture?
Answer: When regulators favor the industry they regulate. Regulators develop close ties with industry interests.
Flashcard 18: How does a price ceiling affect producer surplus?
Answer: It decreases producer surplus. Artificially low prices reduce producer profits.
Flashcard 19: Identify the effect of negative externalities.
Answer: Overproduction and social costs. Private costs below social costs cause excess production.
Flashcard 20: What is an externality?
Answer: A cost or benefit affecting third parties. Spillover effects not reflected in market prices.
Flashcard 21: How does a price floor affect consumer surplus?
Answer: It decreases consumer surplus. Artificially high prices increase consumer costs.
Flashcard 22: Identify the effect of positive externalities.
Answer: Underproduction and social benefits. Private benefits below social benefits cause insufficient production.
Flashcard 23: What is deadweight loss?
Answer: A loss of total welfare due to inefficiency. Occurs when markets don't achieve allocative efficiency.
Flashcard 24: Which factor determines who bears the burden of a tax?
Answer: Elasticity of supply and demand. Less elastic side bears more tax burden.
Flashcard 25: What is the purpose of a tax?
Answer: To raise revenue and/or discourage consumption. Government charges increase costs to influence behavior.
Flashcard 26: Which factor determines who bears the burden of a tax?
Answer: Elasticity of supply and demand. Less elastic side bears more tax burden.
Flashcard 27: What is the impact of a tax on inelastic demand?
Answer: Higher tax revenue with less quantity change. Consumers can't easily reduce quantity when taxed.
Flashcard 28: Identify the main goal of government intervention in a monopoly.
Answer: To increase social welfare. Monopolies create deadweight loss from underproduction.
Flashcard 29: Identify the effect of a binding price ceiling.
Answer: It creates a shortage in the market. Quantity demanded exceeds quantity supplied at the ceiling price.
Flashcard 30: Identify the effect of a binding price ceiling.
Answer: It creates a shortage in the market. Quantity demanded exceeds quantity supplied at the ceiling price.
Flashcard 31: What is a price floor?
Answer: A minimum legal price set above equilibrium. Prevents prices from falling below the set minimum.
Flashcard 32: What is the impact of a tax on inelastic demand?
Answer: Higher tax revenue with less quantity change. Consumers can't easily reduce quantity when taxed.
Flashcard 33: What is an externality?
Answer: A cost or benefit affecting third parties. Spillover effects not reflected in market prices.
Flashcard 34: What does a tax incidence depend on?
Answer: The relative elasticities of supply and demand. More elastic side bears less tax burden.
Flashcard 35: What is a price ceiling?
Answer: A maximum legal price set below equilibrium. Prevents prices from rising above the set limit.
Flashcard 36: Identify the effect of a tax on consumer surplus.
Answer: It decreases consumer surplus. Higher prices reduce consumer benefits from trade.
Flashcard 37: What is regulatory capture?
Answer: When regulators favor the industry they regulate. Regulators develop close ties with industry interests.
Flashcard 38: What effect does a tax have on supply?
Answer: It decreases supply, shifting the curve left. Higher production costs reduce willingness to supply.
Flashcard 39: What is a Pigovian tax?
Answer: A tax to correct a negative externality. Makes polluters pay for social costs imposed.
Flashcard 40: How does a price ceiling affect producer surplus?
Answer: It decreases producer surplus. Artificially low prices reduce producer profits.
Flashcard 41: What is the effect of a subsidy on foreign competition?
Answer: It decreases foreign competitiveness. Lower costs help domestic firms compete globally.
Flashcard 42: Identify the effect of a subsidy on producer surplus.
Answer: It increases producer surplus. Lower costs or higher prices benefit producers.
Flashcard 43: What is the result of correcting a positive externality?
Answer: Increase in the external benefit. Encouraging externality improves social welfare.
Flashcard 44: What causes deadweight loss in taxation?
Answer: Market distortions reducing quantity traded. Taxes discourage beneficial trades between buyers and sellers.
Flashcard 45: What is the purpose of a subsidy?
Answer: To lower the cost of production or consumption. Government payment reduces costs for producers or consumers.
Flashcard 46: How does a subsidy affect a monopolist's output?
Answer: It increases the monopolist's output. Lower marginal costs enable increased production.
Flashcard 47: What is the effect of a tax on a monopolist's output?
Answer: It reduces the monopolist's output. Higher marginal costs lead to less production.
Flashcard 48: What is a price ceiling?
Answer: A maximum legal price set below equilibrium. Prevents prices from rising above the set limit.
Flashcard 49: What is a common result of government-imposed quotas?
Answer: Increased prices due to limited supply. Restricted quantity drives up market prices.
Flashcard 50: Identify a possible negative effect of price controls.
Answer: Market distortions and inefficiencies. Artificial prices create shortages or surpluses.
Flashcard 51: What does a tax incidence depend on?
Answer: The relative elasticities of supply and demand. More elastic side bears less tax burden.
Flashcard 52: What is the effect of a subsidy on market equilibrium?
Answer: Lowers equilibrium price, raises quantity. Government payment shifts supply curve rightward.
Flashcard 53: What is the result of correcting a negative externality?
Answer: Reduction of the external cost. Internalizing externality improves social welfare.
Flashcard 54: What is the effect of a subsidy on market equilibrium?
Answer: Lowers equilibrium price, raises quantity. Government payment shifts supply curve rightward.
Flashcard 55: What is the effect of a quota?
Answer: Limits the quantity of a good that can be sold. Creates artificial scarcity by restricting supply.
Flashcard 56: Identify the effect of a binding price floor.
Answer: It creates a surplus in the market. Quantity supplied exceeds quantity demanded at the floor price.
Flashcard 57: What is the effect of a tax on a monopolist's output?
Answer: It reduces the monopolist's output. Higher marginal costs lead to less production.
Flashcard 58: What is the effect of a tax on market equilibrium?
Answer: Raises equilibrium price, lowers quantity. Government levy shifts supply curve leftward.
Flashcard 59: What causes deadweight loss in taxation?
Answer: Market distortions reducing quantity traded. Taxes discourage beneficial trades between buyers and sellers.
Flashcard 60: How does a price floor affect consumer surplus?
Answer: It decreases consumer surplus. Artificially high prices increase consumer costs.
Flashcard 61: What effect does a subsidy have on supply?
Answer: It increases supply, shifting the curve right. Lower production costs increase willingness to supply.
Flashcard 62: Identify the main goal of government intervention in a monopoly.
Answer: To increase social welfare. Monopolies create deadweight loss from underproduction.
Flashcard 63: What type of good is most affected by a subsidy?
Answer: Necessities with inelastic demand. Essential goods benefit most from cost reduction.
Flashcard 64: What is a common result of government-imposed quotas?
Answer: Increased prices due to limited supply. Restricted quantity drives up market prices.
Flashcard 65: What is the effect of tariffs on domestic producers?
Answer: Increases producer surplus. Reduced foreign competition benefits domestic firms.
Flashcard 66: What is deadweight loss?
Answer: A loss of total welfare due to inefficiency. Occurs when markets don't achieve allocative efficiency.
Flashcard 67: What is the result of correcting a negative externality?
Answer: Reduction of the external cost. Internalizing externality improves social welfare.
Flashcard 68: What is the effect of a subsidy on foreign competition?
Answer: It decreases foreign competitiveness. Lower costs help domestic firms compete globally.
Flashcard 69: What is the purpose of a tax?
Answer: To raise revenue and/or discourage consumption. Government charges increase costs to influence behavior.
Flashcard 70: What is the main purpose of antitrust policy?
Answer: To prevent anti-competitive practices. Laws prevent monopolies and promote competition.
Flashcard 71: Identify the effect of a binding price floor.
Answer: It creates a surplus in the market. Quantity supplied exceeds quantity demanded at the floor price.
Flashcard 72: How does a subsidy affect a monopolist's output?
Answer: It increases the monopolist's output. Lower marginal costs enable increased production.
Flashcard 73: What effect does a subsidy have on supply?
Answer: It increases supply, shifting the curve right. Lower production costs increase willingness to supply.
Flashcard 74: What is the purpose of a subsidy?
Answer: To lower the cost of production or consumption. Government payment reduces costs for producers or consumers.
Flashcard 75: What is the effect of tariffs on domestic producers?
Answer: Increases producer surplus. Reduced foreign competition benefits domestic firms.