Question 1

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

Accepted Answer

A) a market dominated by government regulation. 
B) well-functioning markets. 
C) a market made up of many buyers and sellers. 
D) a centralized market system. 
A) a market dominated by government regulation. 
B) well-functioning markets. 
C) a market made up of many buyers and sellers. 
D) a centralized market system.

Question 2

Suppose the United States removes sugar quotas and the market price of sugar drops.If the demand curve for candy bars is downward-sloping,in the candy bar market we would expect the:

Accepted Answer

A) consumer surplus to increase. 
B) consumer surplus to decrease. 
C) consumer surplus to be unchanged. 
D) deadweight loss to increase. 
A) consumer surplus to increase. 
B) consumer surplus to decrease. 
C) consumer surplus to be unchanged. 
D) deadweight loss to increase.

Question 3

We can measure total consumer surplus for good X as the:

Accepted Answer

A) sum of the individual consumer surpluses for all buyers of X. 
B) area above the demand curve for X and below the price paid for X. 
C) area bounded by the demand curve for X and the two axes. 
D) area above the supply curve for X. 
A) sum of the individual consumer surpluses for all buyers of X. 
B) area above the demand curve for X and below the price paid for X. 
C) area bounded by the demand curve for X and the two axes. 
D) area above the supply curve for X.

Question 4

Which situation would most likely cause a DECREASE in consumer surplus in the toy market?

Accepted Answer

A) The cost of shipping increases because of higher oil prices. 
B) Consumer income increases. 
C) There is an unexpected baby boom. 
D) A new assembly line design increases worker productivity. 
A) The cost of shipping increases because of higher oil prices. 
B) Consumer income increases. 
C) There is an unexpected baby boom. 
D) A new assembly line design increases worker productivity.

Question 5

Use the following to answer question:  
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Diane sells _____ pumpkins,and her producer surplus is _____.

Accepted Answer

A) four;$11 
B) three;$8 
C) two;$6 
D) one;$4 
A) four;$11 
B) three;$8 
C) two;$6 
D) one;$4

Question 6

Use the following to answer question:  
-(Table: Producer Surplus)Use Table: Producer Surplus.If the price of a ticket to see The Nutty Nutcracker is $50,then Francisco's producer surplus is:

Accepted Answer

A) $0. 
B) $40. 
C) $90. 
D) $240. 
A) $0. 
B) $40. 
C) $90. 
D) $240.

Question 7

Use the following to answer question:  
-(Table: Willingness to Pay for Basketball Sneakers)The table Willingness to Pay for Basketball Sneakers shows each player's willingness to pay for basketball sneakers.Assume that each player wants to buy at most,one pair of sneakers.If the price of basketball sneakers is $60,how many pairs will be purchased?

Accepted Answer

A) five 
B) four 
C) three 
D) two 
A) five 
B) four 
C) three 
D) two

Question 8

Use the following to answer question:  
-(Figure: A Market in Equilibrium)Look at the figure A Market in Equilibrium.At the equilibrium price,this market's total producer and consumer surplus equals the area:

Accepted Answer

A) BCDG. 
B) AIF. 
C) DIF. 
D) ADI. 
A) BCDG. 
B) AIF. 
C) DIF. 
D) ADI.

Question 9

Use the following to answer question:  
-(Figure: Consumer Surplus II)Look at the figure Consumer Surplus II.If the price of the good decreases from $2 to $1,consumer surplus will increase by:

Accepted Answer

A) $5. 
B) $10. 
C) $25. 
D) $35. 
A) $5. 
B) $10. 
C) $25. 
D) $35.

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

Suppose the United States removes sugar quotas and the market price of sugar drops.If the demand curve for candy bars is downward-sloping,in the candy bar market we would expect the:

We can measure total consumer surplus for good X as the:

Which situation would most likely cause a DECREASE in consumer surplus in the toy market?

Use the following to answer question: -(Table: Producer Surplus)Use Table: Producer Surplus.If the price of a ticket to see The Nutty Nutcracker is $50,then Francisco's producer surplus is:

Use the following to answer question: -(Figure: A Market in Equilibrium)Look at the figure A Market in Equilibrium.At the equilibrium price,this market's total producer and consumer surplus equals the area:

Use the following to answer question: -(Figure: Consumer Surplus II)Look at the figure Consumer Surplus II.If the price of the good decreases from $2 to $1,consumer surplus will increase by:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 4: Consumer and Producer Surplus

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

Suppose the United States removes sugar quotas and the market price of sugar drops.If the demand curve for candy bars is downward-sloping,in the candy bar market we would expect the:

We can measure total consumer surplus for good X as the:

Which situation would most likely cause a DECREASE in consumer surplus in the toy market?

Use the following to answer question: -(Table: Producer Surplus)Use Table: Producer Surplus.If the price of a ticket to see The Nutty Nutcracker is $50,then Francisco's producer surplus is:

Use the following to answer question: -(Figure: A Market in Equilibrium)Look at the figure A Market in Equilibrium.At the equilibrium price,this market's total producer and consumer surplus equals the area:

Use the following to answer question: -(Figure: Consumer Surplus II)Look at the figure Consumer Surplus II.If the price of the good decreases from $2 to $1,consumer surplus will increase by:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters