Question 1

When you arrive at Olive Garden with your date,you hae to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

Accepted Answer

A)  market price 
B)  first-come, first-served 
C)  command 
D)  personal characteristics 
E)  sharing equally 
A)  market price 
B)  first-come, first-served 
C)  command 
D)  personal characteristics 
E)  sharing equally

Question 2

-In the figure above,when 6,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

Accepted Answer

A)  exceeds; too little 
B)  exceeds; too much 
C)  is below; too much 
D)  is below; too little 
E)  equals ; the efficient quantity of 
A)  exceeds; too little 
B)  exceeds; too much 
C)  is below; too much 
D)  is below; too little 
E)  equals ; the efficient quantity of

Question 3

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 20,000th soda is

Accepted Answer

A)  $0.00. 
B)  $0.50. 
C)  $1.00. 
D)  more than $1.00. 
E)  None of the above answers is correct. 
A)  $0.00. 
B)  $0.50. 
C)  $1.00. 
D)  more than $1.00. 
E)  None of the above answers is correct.

Question 4

Economists conclude that the only way to measure fairness is

Accepted Answer

A)  to insure that the rules are fair. 
B)  to insure that the result is fair. 
C)  to insure that both the rules and the result are fair. 
D)  to compare the allocatively efficient quantity to the equilibrium quantity. 
E)  None of the above answers is correct. 
A)  to insure that the rules are fair. 
B)  to insure that the result is fair. 
C)  to insure that both the rules and the result are fair. 
D)  to compare the allocatively efficient quantity to the equilibrium quantity. 
E)  None of the above answers is correct.

Question 5

The difference between the marginal benefit from a new pair of shoes and the price of the new pair of shoes is

Accepted Answer

A)  the consumer surplus from that pair of shoes. 
B)  what we get. 
C)  what we have to pay. 
D)  the price when the marginal benefit is maximized. 
E)  the consumer's expenditure on the shoes. 
A)  the consumer surplus from that pair of shoes. 
B)  what we get. 
C)  what we have to pay. 
D)  the price when the marginal benefit is maximized. 
E)  the consumer's expenditure on the shoes.

Question 6

-Suppose a factory can be designed to produce either trucks or cars.The figure above shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars.
a.What is the marginal benefit of the 25th truck?
b.What is the marginal cost of the 25th truck?
c.Should the 25th truck be produced? Why or why not.
d.What is the marginal benefit of the 75th truck?
e.What is the marginal cost of the 75th truck?
f.Should the 75th truck be produced? Why or why not?
g.What is the allocatively efficient quantity of trucks?

Accepted Answer

a.3 cars
b.1 car
c.This truck should be

Question 7

A benefit that accrues to people other than the buyer of a good is known as ________ benefit.

Accepted Answer

A)  an internal 
B)  an external 
C)  a marginal 
D)  a total 
E)  a subsidized 
A)  an internal 
B)  an external 
C)  a marginal 
D)  a total 
E)  a subsidized

Question 8

In general,the marginal cost curve

Accepted Answer

A)  has a positive slope. 
B)  has a negative slope. 
C)  is horizontal. 
D)  is vertical. 
E)  is U-shaped. 
A)  has a positive slope. 
B)  has a negative slope. 
C)  is horizontal. 
D)  is vertical. 
E)  is U-shaped.

Question 9

The opportunity cost of producing one more unit of a good or service is the

Accepted Answer

A)  marginal cost. 
B)  marginal benefit. 
C)  efficient level of production. 
D)  market outcome. 
E)  price of the good or service. 
A)  marginal cost. 
B)  marginal benefit. 
C)  efficient level of production. 
D)  market outcome. 
E)  price of the good or service.

Question 10

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

Accepted Answer

A)  $5,500. 
B)  $3,000. 
C)  $2,500. 
D)  $500. 
E)  zero because he buys the piano. 
A)  $5,500. 
B)  $3,000. 
C)  $2,500. 
D)  $500. 
E)  zero because he buys the piano.

Question 11

If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more,we know that $23 is the

Accepted Answer

A)  highest price the seller hopes to realize for this output. 
B)  minimum price the seller must receive to produce this unit. 
C)  average price of all the prices the seller could charge. 
D)  price that sets the marginal benefit equal to the price. 
E)  only price for which the seller is willing to sell this unit of the good. 
A)  highest price the seller hopes to realize for this output. 
B)  minimum price the seller must receive to produce this unit. 
C)  average price of all the prices the seller could charge. 
D)  price that sets the marginal benefit equal to the price. 
E)  only price for which the seller is willing to sell this unit of the good.

Question 12

-In the above figure,what is the marginal cost of the 8th pizza?

Accepted Answer

A)  $1.50 
B)  $12 
C)  $6 
D)  $96 
E)  8 pizzas 
A)  $1.50 
B)  $12 
C)  $6 
D)  $96 
E)  8 pizzas

Question 13

John has a marginal benefit of $7 for 1 slice of pizza,$5 for a second slice,$3 for a third slice,$1 for a fourth slice,and $0.50 for a fifth slice.The price of pizza is $1.50 per slice.Which of the following statements is correct?

Accepted Answer

A)  John will purchase 3 slices of pizza and have consumer surplus of $10.50. 
B)  John will purchase 4 slices of pizza and have consumer surplus of $12.00. 
C)  John will purchase 2 slices of pizza and have consumer surplus of $1.50. 
D)  John will purchase 3 slices of pizza and have consumer surplus of $4.50. 
E)  John will purchase 2 slices of pizza and have consumer surplus of $3.00. 
A)  John will purchase 3 slices of pizza and have consumer surplus of $10.50. 
B)  John will purchase 4 slices of pizza and have consumer surplus of $12.00. 
C)  John will purchase 2 slices of pizza and have consumer surplus of $1.50. 
D)  John will purchase 3 slices of pizza and have consumer surplus of $4.50. 
E)  John will purchase 2 slices of pizza and have consumer surplus of $3.00.

Question 14

Graphically,producer surplus is the area under the

Accepted Answer

A)  demand curve and above the supply curve, up to the relevant quantity. 
B)  price and above the demand curve, up to the relevant quantity. 
C)  price and above the supply curve, up to the relevant quantity. 
D)  price and above the quantity axis, up to the relevant quantity. 
E)  demand curve and above the price, up to the relevant quantity. 
A)  demand curve and above the supply curve, up to the relevant quantity. 
B)  price and above the demand curve, up to the relevant quantity. 
C)  price and above the supply curve, up to the relevant quantity. 
D)  price and above the quantity axis, up to the relevant quantity. 
E)  demand curve and above the price, up to the relevant quantity.

Question 15

A supply curve is the same as a

Accepted Answer

A)  total cost curve. 
B)  marginal cost curve. 
C)  total benefit curve. 
D)  marginal benefit curve. 
E)  deadweight loss curve. 
A)  total cost curve. 
B)  marginal cost curve. 
C)  total benefit curve. 
D)  marginal benefit curve. 
E)  deadweight loss curve.

Question 16

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

Accepted Answer

A)  a tax. 
B)  a subsidy. 
C)  a quantity regulation. 
D)  a price regulation. 
E)  an externality. 
A)  a tax. 
B)  a subsidy. 
C)  a quantity regulation. 
D)  a price regulation. 
E)  an externality.

Question 17

Consumer surplus is equal to

Accepted Answer

A)  marginal benefit minus price summed over the quantity consumed. 
B)  price minus marginal benefit summed over the quantity consumed. 
C)  marginal benefit summed over the quantity consumed. 
D)  price multiplied by the quantity consumed. 
E)  marginal benefit plus price summed over the quantity consumed. 
A)  marginal benefit minus price summed over the quantity consumed. 
B)  price minus marginal benefit summed over the quantity consumed. 
C)  marginal benefit summed over the quantity consumed. 
D)  price multiplied by the quantity consumed. 
E)  marginal benefit plus price summed over the quantity consumed.

Question 18

A supply curve shows the ________ of producing one more unit of a good or service.

Accepted Answer

A)  producer surplus 
B)  consumer surplus 
C)  total benefit 
D)  marginal cost 
E)  marginal benefit to the producer 
A)  producer surplus 
B)  consumer surplus 
C)  total benefit 
D)  marginal cost 
E)  marginal benefit to the producer

Question 19

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Accepted Answer

A)  command 
B)  majority rule 
C)  force 
D)  personal characteristics 
E)  lottery 
A)  command 
B)  majority rule 
C)  force 
D)  personal characteristics 
E)  lottery

Question 20

Which of the following situations describing a resource allocation method most resembles the market price method?

Accepted Answer

A)  Food from the Weld County Food Bank is distributed to families in need. 
B)  Lattes are sold at Starbucks. 
C)  Jose works at Intel. His manager tells him what work needs to be completed each month. 
D)  Matt's mother had the rule that whoever cuts the cake chooses their slice last. 
E)  Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. 
A)  Food from the Weld County Food Bank is distributed to families in need. 
B)  Lattes are sold at Starbucks. 
C)  Jose works at Intel. His manager tells him what work needs to be completed each month. 
D)  Matt's mother had the rule that whoever cuts the cake chooses their slice last. 
E)  Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets.

When you arrive at Olive Garden with your date,you hae to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

-In the figure above,when 6,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 20,000th soda is

Economists conclude that the only way to measure fairness is

The difference between the marginal benefit from a new pair of shoes and the price of the new pair of shoes is

A benefit that accrues to people other than the buyer of a good is known as ________ benefit.

In general,the marginal cost curve

The opportunity cost of producing one more unit of a good or service is the

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more,we know that $23 is the

-In the above figure,what is the marginal cost of the 8th pizza?

John has a marginal benefit of $7 for 1 slice of pizza,$5 for a second slice,$3 for a third slice,$1 for a fourth slice,and $0.50 for a fifth slice.The price of pizza is $1.50 per slice.Which of the following statements is correct?

Graphically,producer surplus is the area under the

A supply curve is the same as a

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

Consumer surplus is equal to

A supply curve shows the ________ of producing one more unit of a good or service.

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Which of the following situations describing a resource allocation method most resembles the market price method?

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 6: Efficiency and Fairness of Markets

When you arrive at Olive Garden with your date,you hae to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

-In the figure above,when 6,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 20,000th soda is

Economists conclude that the only way to measure fairness is

The difference between the marginal benefit from a new pair of shoes and the price of the new pair of shoes is

A benefit that accrues to people other than the buyer of a good is known as ________ benefit.

In general,the marginal cost curve

The opportunity cost of producing one more unit of a good or service is the

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more,we know that $23 is the

-In the above figure,what is the marginal cost of the 8th pizza?

John has a marginal benefit of $7 for 1 slice of pizza,$5 for a second slice,$3 for a third slice,$1 for a fourth slice,and $0.50 for a fifth slice.The price of pizza is $1.50 per slice.Which of the following statements is correct?

Graphically,producer surplus is the area under the

A supply curve is the same as a

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

Consumer surplus is equal to

A supply curve shows the ________ of producing one more unit of a good or service.

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Which of the following situations describing a resource allocation method most resembles the market price method?

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

-In the figure above,when 6,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.