Errata Sheet for
Sexton Essentials of Economics 2e
0324222092
Chapter 2 Study Guide
Fill in the Blanks
13. Correct answer: rise, fall, positive, fall, rise, negative
Chapter 3 Study Guide
Problems
3. c. Correct answer: 10 units of food
Chapter 4 Study Guide
Fill in the Blanks
20. Correct answer: lower, right
Chapter 5 Study Guide
Problems
2. b. Starting from an initial equilibrium at E, what would happen if there were both a decrease in the price of a related product and an increase in income, if it is a normal good?
Correct answer: F; because it indicates an increase in supply and an increase in demand.
Chapter 7, Page 131
Exhibit 6 Welfare Effects of a Price Floor When Government Buys the Surplus
Caption should read:
After the price floor is implemented, the price rises to P2 and output falls to Q2; there is a loss in the consumer surplus of b + c but a gain in producer surplus of b + c + d. However, this is not the end of the story, because the cost to the government (taxpayers), c + d + f + g + h + i, is greater than the gain to producers, area d, so there is a deadweight loss of c + f + g + h + i.
Chapter 7 Study Guide
Multiple Choice
- If the price of DVDs is $20, the consumer surplus Fred receives from purchasing two DVDs would be
- $10.
- $15.
- $20.
- $55.
- $90.
- If the price of DVDs is $25, the consumer surplus Fred receives from purchasing two DVDs is
- $0.
- $5.
- $25.
- $55.
- $70.
Chapter 13 Study Guide
Multiple Choice
7. Correct answer: d
Chapter 14 Study Guide
Multiple Choice
36. Answer choice e should read: do both b and c.
Chapter 14 Study Guide
Problems
4. b. Correct answer: 1%; 0%
Chapter 17 Study Guide
Fill in the Blanks
11. Correct answer: increases; reduces; reduces
Chapter 18 Study Guide
Fill in the Blanks
3. Correct answer: increase; decrease
Chapter 18 Study Guide
Problems
6. c. Correct answer: The economy would end up at a long-run equilibrium at point E4.
6. e. Correct answer: The economy would end up in long-run equilibrium at E4.
Chapter 20 Study Guide
Problems
4. b. Correct answer:10 percent$36,000
15 percent$34,000
20 percent$32,000