Question 1

If a consumer places a value of $15 on a particular good and if the price of the good is $17,then

Accepted Answer

A) the consumer has consumer surplus of $2 if he or she buys the good. 
B) the consumer does not purchase the good. 
C) the market is not a competitive market. 
D) there is going to be downward pressure on the price of the good. 
A) the consumer has consumer surplus of $2 if he or she buys the good. 
B) the consumer does not purchase the good. 
C) the market is not a competitive market. 
D) there is going to be downward pressure on the price of the good.

Question 2

Total surplus in a market is the total area

Accepted Answer

A) below the demand curve and above the price. 
B) below price and up to the point of equilibrium. 
C) below the demand curve and above the supply curve, up to the equilibrium quantity. 
D) below the demand curve and above the horizontal axis, up to the equilibrium quantity. 
A) below the demand curve and above the price. 
B) below price and up to the point of equilibrium. 
C) below the demand curve and above the supply curve, up to the equilibrium quantity. 
D) below the demand curve and above the horizontal axis, up to the equilibrium quantity.

Question 3

Figure 7-3.
On the graph below, Q represents the quantity of the good and P represents the good's price.
  
-Refer to Figure 7-3.If the price of the good is $5,then consumer surplus is

Accepted Answer

A) $9. 
B) $11. 
C) $13. 
D) $16. 
A) $9. 
B) $11. 
C) $13. 
D) $16.

Question 4

Figure 7-12
  
-Refer to Figure 7-12.At the quantity Q₃,

Accepted Answer

A) the market is in equilibrium. 
B) consumer surplus is maximized. 
C) the sum of consumer surplus and producer surplus is maximized. 
D) the value to buyers is less than the cost to sellers. 
A) the market is in equilibrium. 
B) consumer surplus is maximized. 
C) the sum of consumer surplus and producer surplus is maximized. 
D) the value to buyers is less than the cost to sellers.

Question 5

The following table represents the costs of five possible sellers.
Table 7-4
  
-Refer to Table 7-4.Who is a marginal seller when the price is $1,200?

Accepted Answer

A) only Jill 
B) Jill and Dale 
C) only Denise, Catherine, and Jackson 
D) Denise, Catherine, Jackson, and Jill 
A) only Jill 
B) Jill and Dale 
C) only Denise, Catherine, and Jackson 
D) Denise, Catherine, Jackson, and Jill

Question 6

If Roberta sells a shirt for $30,and her producer surplus from the sale is $23,her cost must have been

Accepted Answer

A) $53. 
B) $30. 
C) $7. 
D) We would have to know the consumer surplus in order to make this determination. 
A) $53. 
B) $30. 
C) $7. 
D) We would have to know the consumer surplus in order to make this determination.

Question 7

Cameron visits a sporting goods store to buy a new set of golf clubs.He is willing to pay $750 for the clubs,but buys them on sale for $575.Cameron's consumer surplus from the purchase is

Accepted Answer

A) $175. 
B) $575. 
C) $750. 
D) $1,325. 
A) $175. 
B) $575. 
C) $750. 
D) $1,325.

Question 8

In a market,total surplus is

Accepted Answer

A) equal to producer surplus plus consumer surplus. 
B) equal to the total cost to sellers minus the total value to buyers. 
C) equal to consumers' willingness to pay plus producers' cost. 
D) greater than the sum of consumer surplus plus producer surplus. 
A) equal to producer surplus plus consumer surplus. 
B) equal to the total cost to sellers minus the total value to buyers. 
C) equal to consumers' willingness to pay plus producers' cost. 
D) greater than the sum of consumer surplus plus producer surplus.

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

If a consumer places a value of $15 on a particular good and if the price of the good is $17,then

Total surplus in a market is the total area

Figure 7-3. On the graph below, Q represents the quantity of the good and P represents the good's price. -Refer to Figure 7-3.If the price of the good is $5,then consumer surplus is

Figure 7-12 -Refer to Figure 7-12.At the quantity Q₃,

The following table represents the costs of five possible sellers. Table 7-4 -Refer to Table 7-4.Who is a marginal seller when the price is $1,200?

If Roberta sells a shirt for $30,and her producer surplus from the sale is $23,her cost must have been

Cameron visits a sporting goods store to buy a new set of golf clubs.He is willing to pay $750 for the clubs,but buys them on sale for $575.Cameron's consumer surplus from the purchase is

In a market,total surplus is

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Applications

Supply, demand, and Government Policies

Application: 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

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

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 Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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