Question 1

-In the above figure,what is the marginal cost of the 4th pizza?

Accepted Answer

A)  $0 
B)  $4 
C)  $9 
D)  $36 
E)  4 pizzas 
A)  $0 
B)  $4 
C)  $9 
D)  $36 
E)  4 pizzas

Question 2

Which of the following is part of the cost of income transfers?

Accepted Answer

A)  Tax-collecting agencies cost money to administer. 
B)  Taxing incomes encourages people to work harder. 
C)  Income transfers make the results more unfair. 
D)  Income transfers increase the size of the economic pie. 
E)  Income transfers are a similar to allocating resources using a lottery. 
A)  Tax-collecting agencies cost money to administer. 
B)  Taxing incomes encourages people to work harder. 
C)  Income transfers make the results more unfair. 
D)  Income transfers increase the size of the economic pie. 
E)  Income transfers are a similar to allocating resources using a lottery.

Question 3

All points on the production possibilities frontier

Accepted Answer

A)  are production inefficient. 
B)  achieve allocative efficiency. 
C)  are production efficient but only one point achieves allocative efficiency. 
D)  are allocatively efficient but only one point achieves production efficiency. 
E)  are allocatively inefficient. 
A)  are production inefficient. 
B)  achieve allocative efficiency. 
C)  are production efficient but only one point achieves allocative efficiency. 
D)  are allocatively efficient but only one point achieves production efficiency. 
E)  are allocatively inefficient.

Question 4

When a product benefits people other than the buyer of the product,the product is said to have

Accepted Answer

A)  an external cost. 
B)  an excludable cost. 
C)  an external benefit. 
D)  an excludable benefit. 
E)  a subsidized benefit. 
A)  an external cost. 
B)  an excludable cost. 
C)  an external benefit. 
D)  an excludable benefit. 
E)  a subsidized benefit.

Question 5

-Which of the following leads to a deadweight loss?
i.overproduction
ii.underproduction
iii.taxes
iv.monopoly

Accepted Answer

A)  ii only 
B)  iii and iv 
C)  i and ii 
D)  i, ii, iii, and iv 
E)  i, ii, and iii 
A)  ii only 
B)  iii and iv 
C)  i and ii 
D)  i, ii, iii, and iv 
E)  i, ii, and iii

Question 6

Allocative efficiency is achieved when the marginal benefit of a good

Accepted Answer

A)  exceeds the marginal cost regardless of how much the difference is. 
B)  is less than its marginal cost. 
C)  is equal to its marginal cost. 
D)  equals zero. 
E)  exceeds the marginal cost by as much as possible. 
A)  exceeds the marginal cost regardless of how much the difference is. 
B)  is less than its marginal cost. 
C)  is equal to its marginal cost. 
D)  equals zero. 
E)  exceeds the marginal cost by as much as possible.

Question 7

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

Accepted Answer

A)  if you buy it, you would be cheated because you would realize no total benefit from the purchase. 
B)  you buy it but you get no marginal benefit from the purchase. 
C)  you will not buy it. 
D)  you buy it but you get no consumer surplus from the purchase. 
E)  you might buy it depending on how the slice's marginal benefit compares to its price. 
A)  if you buy it, you would be cheated because you would realize no total benefit from the purchase. 
B)  you buy it but you get no marginal benefit from the purchase. 
C)  you will not buy it. 
D)  you buy it but you get no consumer surplus from the purchase. 
E)  you might buy it depending on how the slice's marginal benefit compares to its price.

Question 8

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

Accepted Answer

The statement is tru

Question 9

Suppose a market produces 5,000 tons of wheat.At this quantity,the marginal cost exceeds the marginal benefit.This outcome could be the result of

Accepted Answer

A)  a quantity regulation limiting the amount that can be produced. 
B)  a monopoly. 
C)  a subsidy. 
D)  an external benefit. 
E)  producing a public good. 
A)  a quantity regulation limiting the amount that can be produced. 
B)  a monopoly. 
C)  a subsidy. 
D)  an external benefit. 
E)  producing a public good.

Question 10

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

Accepted Answer

@#IMG-DLM& A marginal benefit curve is drawn as a

Question 11

-The figure above shows the market for pizza.
a.If the price of a slice of pizza is $3,what is the consumer surplus of the 50th slice?
b.If the price of a slice of pizza is $3,what is the producer surplus of the 50th slice
c.What is the efficient quantity? What is the equilibrium quantity? What is the deadweight loss when the equilibrium quantity is produced?

Accepted Answer

a.Consumer surplus is the distance betwe

Question 12

In a figure that shows a supply curve and a demand curve,producer surplus is the area

Accepted Answer

A)  below the demand curve and above the market price. 
B)  below the supply curve and above the market price. 
C)  above the demand curve and below the market price. 
D)  above the supply curve and below the market price. 
E)  between the demand curve and the supply curve. 
A)  below the demand curve and above the market price. 
B)  below the supply curve and above the market price. 
C)  above the demand curve and below the market price. 
D)  above the supply curve and below the market price. 
E)  between the demand curve and the supply curve.

Question 13

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ________,and the method of allocation for determining the winner of the race is ________.

Accepted Answer

A)  lottery; contest 
B)  contest; lottery 
C)  first-come, first-served; lottery 
D)  lottery; first-come, first-served 
E)  contest; command 
A)  lottery; contest 
B)  contest; lottery 
C)  first-come, first-served; lottery 
D)  lottery; first-come, first-served 
E)  contest; command

Question 14

-In the figure above,if the market is at equilibrium,the sum of the total consumer surplus and the total producer surplus is

Accepted Answer

A)  $240. 
B)  $600. 
C)  $1,000. 
D)  $0. 
E)  $60. 
A)  $240. 
B)  $600. 
C)  $1,000. 
D)  $0. 
E)  $60.

Question 15

To an economist,"value" is the same as

Accepted Answer

A)  marginal cost. 
B)  consumer surplus. 
C)  the minimum price that people are willing to pay for another unit of the good. 
D)  marginal benefit. 
E)  total surplus. 
A)  marginal cost. 
B)  consumer surplus. 
C)  the minimum price that people are willing to pay for another unit of the good. 
D)  marginal benefit. 
E)  total surplus.

Question 16

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

Accepted Answer

A)  first-come, first-served 
B)  market price 
C)  contest 
D)  majority rule 
E)  command 
A)  first-come, first-served 
B)  market price 
C)  contest 
D)  majority rule 
E)  command

Question 17

The demand curve is the same as another curve.Which curve is the same as the demand curve? Why are the curves the same?

Accepted Answer

The demand curve is the same as the marg

Question 18

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

Accepted Answer

A)  $0.00. 
B)  $0.50. 
C)  $1.00. 
D)  $1.50. 
E)  $2.50. 
A)  $0.00. 
B)  $0.50. 
C)  $1.00. 
D)  $1.50. 
E)  $2.50.

Question 19

The efficiency of competitive markets happens because

Accepted Answer

A)  of the benevolence of the butcher, the brewer, and the baker. 
B)  people make environmentally aware purchasing decisions. 
C)  prices adjust to make buying plans and selling plans compatible. 
D)  government organizes and monitors production. 
E)  the U.S. economy uses a command system to allocate resources within the competitive markets. 
A)  of the benevolence of the butcher, the brewer, and the baker. 
B)  people make environmentally aware purchasing decisions. 
C)  prices adjust to make buying plans and selling plans compatible. 
D)  government organizes and monitors production. 
E)  the U.S. economy uses a command system to allocate resources within the competitive markets.

Question 20

-In the figure above,when 4,000 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

-In the above figure,what is the marginal cost of the 4th pizza?

Which of the following is part of the cost of income transfers?

All points on the production possibilities frontier

When a product benefits people other than the buyer of the product,the product is said to have

-Which of the following leads to a deadweight loss? i.overproduction ii.underproduction iii.taxes iv.monopoly

Allocative efficiency is achieved when the marginal benefit of a good

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

Suppose a market produces 5,000 tons of wheat.At this quantity,the marginal cost exceeds the marginal benefit.This outcome could be the result of

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

In a figure that shows a supply curve and a demand curve,producer surplus is the area

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ,and the method of allocation for determining the winner of the race is .

-In the figure above,if the market is at equilibrium,the sum of the total consumer surplus and the total producer surplus is

To an economist,"value" is the same as

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

The demand curve is the same as another curve.Which curve is the same as the demand curve? Why are the curves the same?

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

The efficiency of competitive markets happens because

-In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.

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

-In the above figure,what is the marginal cost of the 4th pizza?

Which of the following is part of the cost of income transfers?

All points on the production possibilities frontier

When a product benefits people other than the buyer of the product,the product is said to have

-Which of the following leads to a deadweight loss? i.overproduction ii.underproduction iii.taxes iv.monopoly

Allocative efficiency is achieved when the marginal benefit of a good

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

Suppose a market produces 5,000 tons of wheat.At this quantity,the marginal cost exceeds the marginal benefit.This outcome could be the result of

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

In a figure that shows a supply curve and a demand curve,producer surplus is the area

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ________,and the method of allocation for determining the winner of the race is ________.

-In the figure above,if the market is at equilibrium,the sum of the total consumer surplus and the total producer surplus is

To an economist,"value" is the same as

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

The demand curve is the same as another curve.Which curve is the same as the demand curve? Why are the curves the same?

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

The efficiency of competitive markets happens because

-In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

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

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ,and the method of allocation for determining the winner of the race is .

-In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.