Exam 6: Efficiency and Fairness of Markets

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

-In the figure above,production efficiency occurs at ________,and allocative efficiency occurs at ________.

The supply curve shows the

Allocative efficiency is achieved when the marginal benefit of a good

Redistributing income from the rich to the poor creates inefficiency because

-The figure above shows the market for pants.If the efficient quantity is produced,

-In the figure above,suppose that $20 is the market equilibrium price.What is the amount of the consumer surplus?

When efficiency is attained,the sum of the total amount of consumer surplus and producer surplus is

Jenn is willing to pay $75 for a purse and the purse's price is $60.What is Jenn's consumer surplus on this purse?

Producer surplus definitely exists when the

In general,the marginal benefit curve

Mandy saved her allowance to buy a 12 pack of cream soda.When Mandy's brother saw the soda,he took four.Sodas were allocated between Mandy and her brother through

-In the above figure,the market is at its equilibrium.Area A is equal to

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

Any point on the production possibility frontier is

A marginal benefit curve

In general,as the consumption of a good or service increases,the marginal benefit from consuming that good or service

Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing

When marginal benefit exceeds marginal cost in a market,

The demand curve is also the