Table 7-3 $\begin{array}{|c|c|} \hline \text { Buyer } & \begin{array}{c} \text { Willingness to Pay for a } \\ \text { Baseball Game Ticket } \\ \text { (Dollars) } \end{array} \\ \hline \text { Nancy } & 10 \\ \hline \text { Tom } & 15 \\ \hline \text { David } & 20 \\ \hline \text { Alexa } & 25 \\ \hline \text { Eric } & 30 \\ \hline \text { Chen } & 35 \\ \hline \end{array}$ -Refer to Table 7-3. If you have 3 (essentially) identical tickets that you sell to the group in an auction, assuming that each person can only buy one ticket, which of the following is closest to the selling price for each ticket?

A) $11 B) $21 C) $16 D) $35 A) $11 B) $21 C) $16 D) $35

Table 7-9 \[\begin{array} { | c | c | } \hline \text { Seller } & \begin{array} { c } \text { Opportunity Cost for } \\ \text { Providing 10 Piano Lessons } \\ \text { (Dollars) } \end{array} \\ \hline \text { Marcia } & 200 \\ \hline \text { Jan } & 250 \\ \hline \text { Cindy } & 350 \\ \hline \text { Greg } & 400 \\ \hline \text { Peter } & 700 \\ \hline \text { Bobby } & 800 \\ \hline \end{array}\] -Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?

A) $0 B) $300 C) $400 D) $700 A) $0 B) $300 C) $400 D) $700

Table 7-11 \[\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Price } \\ \text { (Dollars per unit) } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { (Units) } \end{array} & \begin{array} { c } \text { Quantity Supplied } \\ \text { (Units) } \end{array} \\ \hline 12.00 & 0 & 36 \\ \hline 10.00 & 3 & 30 \\ \hline 8.00 & 6 & 24 \\ \hline 6.00 & 9 & 18 \\ \hline 4.00 & 12 & 12 \\ \hline 2.00 & 15 & 6 \\ \hline 0.00 & 18 & 0 \\ \hline \end{array}\] -Refer to Table 7-12. Both the demand curve and the supply curve are straight lines. At equilibrium, producer surplus is

A) $24. B) $32. C) $48. D) $64. A) $24. B) $32. C) $48. D) $64.

Exam 7: Consumers, Producers, and the Efficiency of Markets

Table 7-3 Buyer Willingness to Pay for a Baseball Game Ticket (Dollars) Nancy 10 Tom 15 David 20 Alexa 25 Eric 30 Chen 35 -Refer to Table 7-3. If you have 3 (essentially) identical tickets that you sell to the group in an auction, assuming that each person can only buy one ticket, which of the following is closest to the selling price for each ticket?

(Multiple Choice)

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Question 21

Producer surplus measures the benefit to sellers from receiving a price above their costs.

(True/False)

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Question 22

Figure 7-7 -Refer to Figure 7-7. If the government imposes a price ceiling of $55 in this market, then total surplus will be

(Multiple Choice)

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Question 23

Jim builds furniture for a living. Jim's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his

(Multiple Choice)

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Question 24

Economists generally believe that, although there may be advantages to society from ticket-scalping, the costs to society of this activity outweigh the benefits.

(True/False)

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Question 25

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $90.

(True/False)

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Question 26

We can say that the allocation of resources is efficient if

(Multiple Choice)

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Question 27

The cost of production plus producer surplus is the price a seller is paid.

(True/False)

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Question 28

Figure 7-4 -Refer to Figure 7-4. Which area represents producer surplus when the price is P₁?

(Multiple Choice)

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Question 29

The current policy on kidney donation effectively sets a price ceiling of zero.

(True/False)

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Question 30

Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being.

(True/False)

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Question 31

Joel has a 1966 Mustang, which he sells to Susie, an avid car collector. Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car. Susie's consumer surplus is $2,000.

(True/False)

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Question 32

Tomato sauce and spaghetti noodles are complementary goods. A decrease in the price of tomatoes will

(Multiple Choice)

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Question 33

Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to

(Multiple Choice)

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Question 34

Table 7-9 Seller Opportunity Cost for Providing 10 Piano Lessons (Dollars) Marcia 200 Jan 250 Cindy 350 Greg 400 Peter 700 Bobby 800 -Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?

(Multiple Choice)

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Question 35

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

(True/False)

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Question 36

The area below the price and above the supply curve measures the producer surplus in a market.

(True/False)

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Question 37

Table 7-11 Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 12.00 0 36 10.00 3 30 8.00 6 24 6.00 9 18 4.00 12 12 2.00 15 6 0.00 18 0 -Refer to Table 7-12. Both the demand curve and the supply curve are straight lines. At equilibrium, producer surplus is

(Multiple Choice)

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Question 38

Table 7-10 Seller Cost (Dollars) LeBron 700 Kobe 600 Kevin 450 Steve 400 -Refer to Table 7-10. You want to hire a professional photographer to take pictures of your family. The table shows the costs of the four potential sellers in the local photography market. Which of the following graphs represents the market supply curve?

(Multiple Choice)

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Question 39

Efficiency is related to the size of the economic pie, whereas equality is related to how the pie gets sliced and distributed.

(True/False)

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Question 40

Exam 7: Consumers, Producers, and the Efficiency of Markets

Producer surplus measures the benefit to sellers from receiving a price above their costs.

Figure 7-7 -Refer to Figure 7-7. If the government imposes a price ceiling of $55 in this market, then total surplus will be

Jim builds furniture for a living. Jim's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his

Economists generally believe that, although there may be advantages to society from ticket-scalping, the costs to society of this activity outweigh the benefits.

If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $90.

We can say that the allocation of resources is efficient if

The cost of production plus producer surplus is the price a seller is paid.

Figure 7-4 -Refer to Figure 7-4. Which area represents producer surplus when the price is P1?

The current policy on kidney donation effectively sets a price ceiling of zero.

Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being.

Joel has a 1966 Mustang, which he sells to Susie, an avid car collector. Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car. Susie's consumer surplus is $2,000.

Tomato sauce and spaghetti noodles are complementary goods. A decrease in the price of tomatoes will

Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to

Table 7-9 ​ ​ Seller Opportunity Cost for Providing 10 Piano Lessons (Dollars) Marcia 200 Jan 250 Cindy 350 Greg 400 Peter 700 Bobby 800 ​ -Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

The area below the price and above the supply curve measures the producer surplus in a market.

Table 7-11 ​ ​ Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 12.00 0 36 10.00 3 30 8.00 6 24 6.00 9 18 4.00 12 12 2.00 15 6 0.00 18 0 ​ -Refer to Table 7-12. Both the demand curve and the supply curve are straight lines. At equilibrium, producer surplus is

Efficiency is related to the size of the economic pie, whereas equality is related to how the pie gets sliced and distributed.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Applications: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 7-4 -Refer to Figure 7-4. Which area represents producer surplus when the price is P₁?

Table 7-9 Seller Opportunity Cost for Providing 10 Piano Lessons (Dollars) Marcia 200 Jan 250 Cindy 350 Greg 400 Peter 700 Bobby 800 -Refer to Table 7-9. The equilibrium market price for 10 piano lessons is $400. What is the total producer surplus in the market?

Table 7-11 Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 12.00 0 36 10.00 3 30 8.00 6 24 6.00 9 18 4.00 12 12 2.00 15 6 0.00 18 0 -Refer to Table 7-12. Both the demand curve and the supply curve are straight lines. At equilibrium, producer surplus is