Course Objectives for Chapter 4: Economic Efficiency, Government Price Setting, and Taxes

 

Students should be able to:

       Define the concepts of consumer surplus and producer surplus.

       Explain the concept of economic efficiency, and use a graph to illustrate how economic efficiency is reduced when a market is not in competitive equilibrium.

       Use demand and supply graphs to analyze the economic impact of price ceilings and floors.

       Use demand and supply graphs to analyze the economic impact of taxes