Question 1

If marginal benefit is greater than marginal cost, output is inefficiently high.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a result of imposing a rent ceiling?

Accepted Answer

A) Some consumer surplus is converted to producer surplus. 
B) There is a reduction in the quantity of apartments supplied. 
C) There is an increase in the quantity of apartments demanded. 
D) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it. 
A) Some consumer surplus is converted to producer surplus. 
B) There is a reduction in the quantity of apartments supplied. 
C) There is an increase in the quantity of apartments demanded. 
D) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it.

Question 3

If the quantity of sunglasses supplied is represented by the equation Qˢ = -60 + 4P then the corresponding price of sunglasses is represented by the equation

Accepted Answer

A) P = 0.25Qˢ + 15. 
B) P = 15Qˢ + 240. 
C) P = Qˢ - 7.5. 
D) P = 12 - 0.4Qˢ. 
A) P = 0.25Qˢ + 15. 
B) P = 15Qˢ + 240. 
C) P = Qˢ - 7.5. 
D) P = 12 - 0.4Qˢ.

Question 4

Consumers are willing to purchase a product up to the point where

Accepted Answer

A) the marginal benefit of consuming the product is equal to the marginal cost of consuming it. 
B) the consumer surplus is equal to the producer surplus. 
C) the marginal benefit of consuming the product equals the area below the supply curve and above the market price. 
D) the marginal benefit of consuming a product is equal to its price. 
A) the marginal benefit of consuming the product is equal to the marginal cost of consuming it. 
B) the consumer surplus is equal to the producer surplus. 
C) the marginal benefit of consuming the product equals the area below the supply curve and above the market price. 
D) the marginal benefit of consuming a product is equal to its price.

Question 5

The sum of consumer surplus and producer surplus is called economic surplus.

Accepted Answer

A) True 
 B)False

Question 6

Which term refers to a legally established minimum price that firms may charge?

Accepted Answer

A) a price ceiling 
B) a subsidy 
C) a price floor 
D) a tariff 
A) a price ceiling 
B) a subsidy 
C) a price floor 
D) a tariff

Question 7

Table 4-4
   
Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-4.If a minimum wage of $11.50 is mandated there will be a

Accepted Answer

A) shortage of 20,000 units of labor. 
B) surplus of 20,000 units of labor. 
C) shortage of 40,000 units of labor. 
D) surplus of 40,000 units of labor. 
A) shortage of 20,000 units of labor. 
B) surplus of 20,000 units of labor. 
C) shortage of 40,000 units of labor. 
D) surplus of 40,000 units of labor.

Question 8

Figure 4-1
   
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $2.00, what is the consumer surplus on the second burrito?

Accepted Answer

A) $0 
B) $1.00 
C) $2.00 
D) $4.50 
A) $0 
B) $1.00 
C) $2.00 
D) $4.50

If marginal benefit is greater than marginal cost, output is inefficiently high.

Which of the following is not a result of imposing a rent ceiling?

If the quantity of sunglasses supplied is represented by the equation Qˢ = -60 + 4P then the corresponding price of sunglasses is represented by the equation

Consumers are willing to purchase a product up to the point where

The sum of consumer surplus and producer surplus is called economic surplus.

Which term refers to a legally established minimum price that firms may charge?

Table 4-4 Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. -Refer to Table 4-4.If a minimum wage of $11.50 is mandated there will be a

Figure 4-1 Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1.If the market price is $2.00, what is the consumer surplus on the second burrito?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 4: Economic Efficiency, Government Price Setting, and Taxes

If marginal benefit is greater than marginal cost, output is inefficiently high.

Which of the following is not a result of imposing a rent ceiling?

If the quantity of sunglasses supplied is represented by the equation Qˢ = -60 + 4P then the corresponding price of sunglasses is represented by the equation

Consumers are willing to purchase a product up to the point where

The sum of consumer surplus and producer surplus is called economic surplus.

Which term refers to a legally established minimum price that firms may charge?

Table 4-4 Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. -Refer to Table 4-4.If a minimum wage of $11.50 is mandated there will be a

Figure 4-1 Figure 4-1 shows Arnold's demand curve for burritos. -Refer to Figure 4-1.If the market price is $2.00, what is the consumer surplus on the second burrito?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters