Question 1

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

Accepted Answer

A) consumer surplus. 
B) total revenue. 
C) marginal benefit. 
D) producer surplus. 
E) total surplus. 
A) consumer surplus. 
B) total revenue. 
C) marginal benefit. 
D) producer surplus. 
E) total surplus.

Question 2

-In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to

Accepted Answer

A) area B + area F. 
B) area D + area I. 
C) area C. 
D) area G + area H. 
E) None of the above answers is correct because the deadweight loss is equal to zero. 
A) area B + area F. 
B) area D + area I. 
C) area C. 
D) area G + area H. 
E) None of the above answers is correct because the deadweight loss is equal to zero.

Question 3

The demand curve is also the

Accepted Answer

A) total cost curve. 
B) total benefit curve. 
C) marginal cost curve. 
D) marginal benefit curve. 
E) marginal deadweight cost curve. 
A) total cost curve. 
B) total benefit curve. 
C) marginal cost curve. 
D) marginal benefit curve. 
E) marginal deadweight cost curve.

Question 4

A point on the supply curve can illustrate the

Accepted Answer

A) price and the corresponding quantity supplied. 
B) marginal cost of that unit of the good. 
C) price the consumer is willing to pay. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) price and the corresponding quantity supplied. 
B) marginal cost of that unit of the good. 
C) price the consumer is willing to pay. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 5

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.If Scott offers two swim tours per week, he incurs a marginal cost of

Accepted Answer

A) more than $30. 
B) $30. 
C) $20. 
D) $10. 
E) $2. 
A) more than $30. 
B) $30. 
C) $20. 
D) $10. 
E) $2.

Question 6

-In the figure above, how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

Accepted Answer

A) $15 
B) $10 
C) $12 
D) $22.50 
E) $5 
A) $15 
B) $10 
C) $12 
D) $22.50 
E) $5

Question 7

When the cost of producing a product is paid, at least in part, by someone other than the producer, the cost is referred to as

Accepted Answer

A) an external cost. 
B) an external profit. 
C) an external benefit. 
D) an external/internal cost. 
E) a public cost. 
A) an external cost. 
B) an external profit. 
C) an external benefit. 
D) an external/internal cost. 
E) a public cost.

Question 8

Which of the following is necessary for allocative efficiency to be achieved?

Accepted Answer

A) Marginal benefit must be maximized. 
B) Marginal cost must be minimized. 
C) Marginal benefit must equal marginal cost. 
D) The difference between marginal benefit and marginal cost must be maximized. 
E) Production must be at a point inside the production possibilities frontier. 
A) Marginal benefit must be maximized. 
B) Marginal cost must be minimized. 
C) Marginal benefit must equal marginal cost. 
D) The difference between marginal benefit and marginal cost must be maximized. 
E) Production must be at a point inside the production possibilities frontier.

Question 9

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

Accepted Answer

The supply curve is the same as the marg

Question 10

-The figure shows the demand curve for hotel rooms at a local resort.
a∙If the hotel charges $120 per night, how many rooms will they rent?
b∙If there are only 40 rooms available, how much are customers willing to pay for a room?
c∙If 60 rooms are available, how much are customers willing to pay?
d∙What do the dollars in your answer to part (c)represent?

Accepted Answer

a∙At $120 a night, the hotel will rent 2

Question 11

-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 12

The marginal benefit of each additional unit of a good consumed

Accepted Answer

A) increases as more is consumed. 
B) is always equal to its marginal cost. 
C) decreases as more is consumed. 
D) will maximize consumer surplus. 
E) is equal to the deadweight loss if the unit of the good is not produced. 
A) increases as more is consumed. 
B) is always equal to its marginal cost. 
C) decreases as more is consumed. 
D) will maximize consumer surplus. 
E) is equal to the deadweight loss if the unit of the good is not produced.

Question 13

-The diagram above depicts the demand for, and market price of, buckets of raw oysters in Orlando.
a∙What is the consumer surplus of the person who buys the 100th bucket of oysters?
b∙What is the consumer surplus of the person who buys the 200th bucket of oysters?
c∙What is the consumer surplus of the person who buys the 300th bucket of oysters?
d∙What is the total consumer surplus from all the oysters consumed in the market?

Accepted Answer

a∙The consumer surplus of the person who

Question 14

Consumer surplus exists when

Accepted Answer

A) it costs less to produce goods than buyers must pay for them. 
B) consumers value the good more highly than what they must pay to buy it. 
C) taxes on goods are less than the appropriate amount. 
D) the marginal benefit of the good is always equal to or less than the price of the good. 
E) the price of the good is greater than the marginal cost of producing a unit of the good. 
A) it costs less to produce goods than buyers must pay for them. 
B) consumers value the good more highly than what they must pay to buy it. 
C) taxes on goods are less than the appropriate amount. 
D) the marginal benefit of the good is always equal to or less than the price of the good. 
E) the price of the good is greater than the marginal cost of producing a unit of the good.

Question 15

When production moves from the efficient quantity to a point of overproduction,

Accepted Answer

A) consumer surplus definitely increases. 
B) the sum of producer surplus and consumer surplus increases. 
C) there is a deadweight loss. 
D) consumers definitely lose and producers definitely gain. 
E) consumers definitely gain and producers definitely lose. 
A) consumer surplus definitely increases. 
B) the sum of producer surplus and consumer surplus increases. 
C) there is a deadweight loss. 
D) consumers definitely lose and producers definitely gain. 
E) consumers definitely gain and producers definitely lose.

Question 16

A marginal benefit curve

Accepted Answer

A) is the same as a demand curve. 
B) is the same as a supply curve. 
C) slopes upwards. 
D) is a vertical line at the efficient quantity. 
E) is U-shaped. 
A) is the same as a demand curve. 
B) is the same as a supply curve. 
C) slopes upwards. 
D) is a vertical line at the efficient quantity. 
E) is U-shaped.

Question 17

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?

Accepted Answer

A) market price 
B) sharing equally 
C) personal characteristics 
D) first-come, first-served 
E) force 
A) market price 
B) sharing equally 
C) personal characteristics 
D) first-come, first-served 
E) force

Question 18

Consumer surplus equals

Accepted Answer

A) producer surplus at a market equilibrium. 
B) marginal benefit minus price, summed over the quantity consumed. 
C) price minus marginal cost. 
D) the deadweight loss if there is underproduction. 
E) the deadweight loss plus the producer surplus. 
A) producer surplus at a market equilibrium. 
B) marginal benefit minus price, summed over the quantity consumed. 
C) price minus marginal cost. 
D) the deadweight loss if there is underproduction. 
E) the deadweight loss plus the producer surplus.

Question 19

A public good

Accepted Answer

A) is a good that is usually consumed in public, such as a restaurant meal. 
B) is a good people can consume even if they do not pay for it. 
C) is a good produced by government. 
D) results in an efficient allocation of resources. 
E) is a good for which people are willing to pay a very high price. 
A) is a good that is usually consumed in public, such as a restaurant meal. 
B) is a good people can consume even if they do not pay for it. 
C) is a good produced by government. 
D) results in an efficient allocation of resources. 
E) is a good for which people are willing to pay a very high price.

Question 20

-The figure above represents the competitive market for slices of key lime pie.When the price equals $3

Accepted Answer

A) there is a shortage of slices of pie. 
B) there is a surplus of slices of pie. 
C) the efficient quantity of slices is being produced. 
D) the quantity produced is inefficient. 
E) the deadweight loss is maximized. 
A) there is a shortage of slices of pie. 
B) there is a surplus of slices of pie. 
C) the efficient quantity of slices is being produced. 
D) the quantity produced is inefficient. 
E) the deadweight loss is maximized.

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

-In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to

The demand curve is also the

A point on the supply curve can illustrate the

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.If Scott offers two swim tours per week, he incurs a marginal cost of

-In the figure above, how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

When the cost of producing a product is paid, at least in part, by someone other than the producer, the cost is referred to as

Which of the following is necessary for allocative efficiency to be achieved?

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

-In the figure above, the minimum price that must be offered for the 5,000th pizza a day to be produced is

The marginal benefit of each additional unit of a good consumed

Consumer surplus exists when

When production moves from the efficient quantity to a point of overproduction,

A marginal benefit curve

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?

Consumer surplus equals

A public good

-The figure above represents the competitive market for slices of key lime pie.When the price equals $3

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

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

-In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to

The demand curve is also the

A point on the supply curve can illustrate the

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.If Scott offers two swim tours per week, he incurs a marginal cost of

-In the figure above, how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

When the cost of producing a product is paid, at least in part, by someone other than the producer, the cost is referred to as

Which of the following is necessary for allocative efficiency to be achieved?

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

-In the figure above, the minimum price that must be offered for the 5,000th pizza a day to be produced is

The marginal benefit of each additional unit of a good consumed

Consumer surplus exists when

When production moves from the efficient quantity to a point of overproduction,

A marginal benefit curve

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?

Consumer surplus equals

A public good

-The figure above represents the competitive market for slices of key lime pie.When the price equals $3

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