Question 1

Explain the difference between the words "value," "price," and "cost."

Accepted Answer

Value refers to the marginal benefit of

Question 2

Consumer surplus exists when a

Accepted Answer

A)  person buys something with a marginal benefit less than what they paid. 
B)  person buys something with a marginal benefit exactly what they paid. 
C)  person buys something with a marginal benefit more than what they paid. 
D)  producer sells something for more than it is worth. 
E)  person buys something with a marginal cost less than what they paid. 
A)  person buys something with a marginal benefit less than what they paid. 
B)  person buys something with a marginal benefit exactly what they paid. 
C)  person buys something with a marginal benefit more than what they paid. 
D)  producer sells something for more than it is worth. 
E)  person buys something with a marginal cost less than what they paid.

Question 3

Marginal benefit is the

Accepted Answer

A)  total benefit we receive from consuming a good or service. 
B)  additional benefit we receive from consuming one more unit of a good or service. 
C)  minimum amount of other goods or services we are willing to give up. 
D)  opportunities given up to get one more unit of a good or service. 
E)  the benefit we receive from consuming one more unit of a good or service minus the cost of the producing one more unit of the good or service. 
A)  total benefit we receive from consuming a good or service. 
B)  additional benefit we receive from consuming one more unit of a good or service. 
C)  minimum amount of other goods or services we are willing to give up. 
D)  opportunities given up to get one more unit of a good or service. 
E)  the benefit we receive from consuming one more unit of a good or service minus the cost of the producing one more unit of the good or service.

Question 4

What is the "invisible hand"?

Accepted Answer

The invisible hand is a concept articula

Question 5

If the price of a visit to Sea World exceeds the marginal cost of the visit by $13,a producer surplus exists for Sea World." Is this statement true or false?

Accepted Answer

The statement is true.Anytime

Question 6

-The figure above shows the market for brooms.If 800 brooms are produced,

Accepted Answer

A)  marginal cost exceeds marginal benefit. 
B)  a deadweight loss does not occur because everyone who wants to buy a broom can. 
C)  the "big tradeoff" occurs. 
D)  value exceeds price. 
E)  the "fair results" approach to fairness is definitely not violated. 
A)  marginal cost exceeds marginal benefit. 
B)  a deadweight loss does not occur because everyone who wants to buy a broom can. 
C)  the "big tradeoff" occurs. 
D)  value exceeds price. 
E)  the "fair results" approach to fairness is definitely not violated.

Question 7

Resource use is allocative efficient

Accepted Answer

A)  when it is not possible to produce more of one good. 
B)  when we produce goods and services that we value most highly. 
C)  when most resources are fully employed. 
D)  at any point on the PPF. 
E)  at all points either on or within the PPF because all these production points are attainable. 
A)  when it is not possible to produce more of one good. 
B)  when we produce goods and services that we value most highly. 
C)  when most resources are fully employed. 
D)  at any point on the PPF. 
E)  at all points either on or within the PPF because all these production points are attainable.

Question 8

The figure above shows the market for pizza.
-In the figure above,if pizza production increases to 15,000 pizzas a day,the deadweight loss is

Accepted Answer

A)  $45,000 per day. 
B)  $12,500 per day. 
C)  $22,500 per day. 
D)  $90,000 per day. 
E)  zero. 
A)  $45,000 per day. 
B)  $12,500 per day. 
C)  $22,500 per day. 
D)  $90,000 per day. 
E)  zero.

Question 9

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

Accepted Answer

A)  $2. 
B)  $20. 
C)  $10. 
D)  $40. 
E)  $4. 
A)  $2. 
B)  $20. 
C)  $10. 
D)  $40. 
E)  $4.

Question 10

The figure above shows the supply curve for pizza and the market price of pizza.
-In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

Accepted Answer

A)  $6. 
B)  $10. 
C)  $8. 
D)  $2. 
E)  $4. 
A)  $6. 
B)  $10. 
C)  $8. 
D)  $2. 
E)  $4.

Question 11

The figure above shows the supply curve for pizza and the market price of pizza.
-In the figure above,the cost of producing 10,000 pizzas a day is

Accepted Answer

A)  $60,000. 
B)  $100,000. 
C)  $40,000. 
D)  $80,000. 
E)  $50,000. 
A)  $60,000. 
B)  $100,000. 
C)  $40,000. 
D)  $80,000. 
E)  $50,000.

Question 12

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Accepted Answer

When less than the efficient amount of a

Explain the difference between the words "value," "price," and "cost."

Consumer surplus exists when a

Marginal benefit is the

What is the "invisible hand"?

If the price of a visit to Sea World exceeds the marginal cost of the visit by $13,a producer surplus exists for Sea World." Is this statement true or false?

-The figure above shows the market for brooms.If 800 brooms are produced,

Resource use is allocative efficient

The figure above shows the market for pizza. -In the figure above,if pizza production increases to 15,000 pizzas a day,the deadweight loss is

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the cost of producing 10,000 pizzas a day is

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Getting Started

The Usand 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

Explain the difference between the words "value," "price," and "cost."

Consumer surplus exists when a

Marginal benefit is the

What is the "invisible hand"?

If the price of a visit to Sea World exceeds the marginal cost of the visit by $13,a producer surplus exists for Sea World." Is this statement true or false?

-The figure above shows the market for brooms.If 800 brooms are produced,

Resource use is allocative efficient

The figure above shows the market for pizza. -In the figure above,if pizza production increases to 15,000 pizzas a day,the deadweight loss is

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the cost of producing 10,000 pizzas a day is

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Getting Started

The Usand 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