Question 1

If total surplus falls,there may have been a(n)_____ in demand or a(n)_____ in supply.

Accepted Answer

A) increase;decrease 
B) increase;increase 
C) decrease;decrease 
D) decrease;increase 
A) increase;decrease 
B) increase;increase 
C) decrease;decrease 
D) decrease;increase

Question 2

Prices are important economic signals because they convey information about how much consumers are willing to pay for a good and how much it costs sellers to produce a good.

Accepted Answer

A) True 
 B)False

Question 3

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 quantity of pumpkins is:

Accepted Answer

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

Question 4

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell,while fans who would not sell their tickets are required to sell,total surplus would decrease.

Accepted Answer

A) True 
 B)False

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,total surplus is:

Accepted Answer

A) $40. 
B) $36. 
C) $24. 
D) $8. 
A) $40. 
B) $36. 
C) $24. 
D) $8.

Question 6

Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:

Accepted Answer

A) you would have been better off being more self-reliant in the movie market. 
B) Ryan Reynolds received a producer surplus of $31 million. 
C) you received a consumer surplus of $10. 
D) you and Ryan Reynolds benefited from this transaction. 
A) you would have been better off being more self-reliant in the movie market. 
B) Ryan Reynolds received a producer surplus of $31 million. 
C) you received a consumer surplus of $10. 
D) you and Ryan Reynolds benefited from this transaction.

Question 7

When a market is efficient:

Accepted Answer

A) there is no way to make some people better off without making other people worse off. 
B) consumers who value buying a good the least are the ones who can purchase the good. 
C) producers whose willingness to accept a price above the market price can sell their good. 
D) there are ways to make everyone better off. 
A) there is no way to make some people better off without making other people worse off. 
B) consumers who value buying a good the least are the ones who can purchase the good. 
C) producers whose willingness to accept a price above the market price can sell their good. 
D) there are ways to make everyone better off.

Question 8

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,total producer surplus is:

Accepted Answer

A) $0. 
B) $8. 
C) $11. 
D) $14. 
A) $0. 
B) $8. 
C) $11. 
D) $14.

Question 9

Use the following to answer question:  
-(Figure: Producer Surplus II)Look at the figure Producer Surplus II.At a price of P2,producer surplus equals the area:

Accepted Answer

A) LMK. 
B) P1K0. 
C) P2M0. 
D) P2P1KM. 
A) LMK. 
B) P1K0. 
C) P2M0. 
D) P2P1KM.

Question 10

A consumer's willingness to pay depends on the:

Accepted Answer

A) cost of producing a given good or service. 
B) expected additional benefit of consuming a given good or service. 
C) size of the shortage of a given good or service. 
D) size of the surplus of a given good or service. 
A) cost of producing a given good or service. 
B) expected additional benefit of consuming a given good or service. 
C) size of the shortage of a given good or service. 
D) size of the surplus of a given good or service.

Question 11

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

Accepted Answer

A) $12. 
B) $26. 
C) $10. 
D) $21. 
A) $12. 
B) $26. 
C) $10. 
D) $21.

Question 12

Use the following to answer question:  
-(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held below equilibrium,producer surplus will be _____ if the market were in equilibrium and total surplus will be _____ if the market were in equilibrium.

Accepted Answer

A) less than;less than 
B) greater than;the same as 
C) less than;the same as 
D) greater than;less than 
A) less than;less than 
B) greater than;the same as 
C) less than;the same as 
D) greater than;less than

Question 13

Use the following to answer question:  
-(Table: Consumer Surplus)Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $75,Miguel's consumer surplus is:

Accepted Answer

A) $60. 
B) $50. 
C) $15. 
D) $240. 
A) $60. 
B) $50. 
C) $15. 
D) $240.

Question 14

(Figure: Monthly Supply of Bread)The figure Monthly Supply of Bread represents the monthly supply of bread at a local bakery.At $3 per loaf,the bakery produces 120 loaves per month.The producer surplus received by this bakery is equal to:

Accepted Answer

A) $120. 
B) $60. 
C) $360. 
D) $180. 
A) $120. 
B) $60. 
C) $360. 
D) $180.

Question 15

The total surplus in a market is the:

Accepted Answer

A) excess supply due to a price above the equilibrium price. 
B) surplus that accrues when a good is not scarce,defined as the total amount (if any)by which quantity supplied exceeds quantity demanded at a zero price. 
C) net benefit to consumers,defined as the excess of consumer surplus over producer surplus. 
D) sum of consumer surplus and producer surplus. 
A) excess supply due to a price above the equilibrium price. 
B) surplus that accrues when a good is not scarce,defined as the total amount (if any)by which quantity supplied exceeds quantity demanded at a zero price. 
C) net benefit to consumers,defined as the excess of consumer surplus over producer surplus. 
D) sum of consumer surplus and producer surplus.

Question 16

Use the following to answer question:  
-(Figure: Consumer Surplus III)In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.

Accepted Answer

A) $50 
B) $59 
C) $124 
D) $144 
A) $50 
B) $59 
C) $124 
D) $144

Question 17

Floyd's cost of selling haircuts is the lowest price at which he is willing to sell haircuts.

Accepted Answer

A) True 
 B)False

Question 18

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $9,who will purchase a bag?

Accepted Answer

A) George only 
B) all of the consumers 
C) Dave only 
D) Alvin and Theodore only 
A) George only 
B) all of the consumers 
C) Dave only 
D) Alvin and Theodore only

Question 19

Use the following to answer question:  
-(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Tuscaloosa.If the price of a hamburger falls from $2.00 to $1.50,the gain in consumer surplus to consumers who are persuaded to buy at the lower price (and who were not buying when the price was $2.00)is equal to:

Accepted Answer

A) $100. 
B) $75. 
C) $50. 
D) $25. 
A) $100. 
B) $75. 
C) $50. 
D) $25.

Question 20

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,total consumer surplus is:

Accepted Answer

A) $10. 
B) $8. 
C) $6. 
D) $0. 
A) $10. 
B) $8. 
C) $6. 
D) $0.

If total surplus falls,there may have been a(n)_ in demand or a(n)_ in supply.

Prices are important economic signals because they convey information about how much consumers are willing to pay for a good and how much it costs sellers to produce a good.

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell,while fans who would not sell their tickets are required to sell,total surplus would decrease.

Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:

When a market is efficient:

Use the following to answer question: -(Figure: Producer Surplus II)Look at the figure Producer Surplus II.At a price of P₂,producer surplus equals the area:

A consumer's willingness to pay depends on the:

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

Use the following to answer question: -(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held below equilibrium,producer surplus will be _ if the market were in equilibrium and total surplus will be _ if the market were in equilibrium.

Use the following to answer question: -(Table: Consumer Surplus)Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $75,Miguel's consumer surplus is:

(Figure: Monthly Supply of Bread)The figure Monthly Supply of Bread represents the monthly supply of bread at a local bakery.At $3 per loaf,the bakery produces 120 loaves per month.The producer surplus received by this bakery is equal to:

The total surplus in a market is the:

Use the following to answer question: -(Figure: Consumer Surplus III)In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.

Floyd's cost of selling haircuts is the lowest price at which he is willing to sell haircuts.

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $9,who will purchase a bag?

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

If total surplus falls,there may have been a(n)_____ in demand or a(n)_____ in supply.

Prices are important economic signals because they convey information about how much consumers are willing to pay for a good and how much it costs sellers to produce a good.

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell,while fans who would not sell their tickets are required to sell,total surplus would decrease.

Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:

When a market is efficient:

Use the following to answer question: -(Figure: Producer Surplus II)Look at the figure Producer Surplus II.At a price of P2,producer surplus equals the area:

A consumer's willingness to pay depends on the:

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

Use the following to answer question: -(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held below equilibrium,producer surplus will be _____ if the market were in equilibrium and total surplus will be _____ if the market were in equilibrium.

Use the following to answer question: -(Table: Consumer Surplus)Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $75,Miguel's consumer surplus is:

(Figure: Monthly Supply of Bread)The figure Monthly Supply of Bread represents the monthly supply of bread at a local bakery.At $3 per loaf,the bakery produces 120 loaves per month.The producer surplus received by this bakery is equal to:

The total surplus in a market is the:

Use the following to answer question: -(Figure: Consumer Surplus III)In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.

Floyd's cost of selling haircuts is the lowest price at which he is willing to sell haircuts.

(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $9,who will purchase a bag?

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

If total surplus falls,there may have been a(n)_ in demand or a(n)_ in supply.

Use the following to answer question: -(Figure: Producer Surplus II)Look at the figure Producer Surplus II.At a price of P₂,producer surplus equals the area:

Use the following to answer question: -(Figure: Consumer and Producer Surplus)Look at the figure Consumer and Producer Surplus.If the price is held below equilibrium,producer surplus will be _ if the market were in equilibrium and total surplus will be _ if the market were in equilibrium.