Question 1

Producer surplus

Accepted Answer

A) increases if market price rises and the supply curve does not shift. 
B) decreases if market price rises and the supply curve does not shift. 
C) is equal to the maximum price consumers are willing to pay. 
D) is the same as the marginal cost. 
E) always must equal consumer surplus. 
A) increases if market price rises and the supply curve does not shift. 
B) decreases if market price rises and the supply curve does not shift. 
C) is equal to the maximum price consumers are willing to pay. 
D) is the same as the marginal cost. 
E) always must equal consumer surplus.

Question 2

How can a person argue that health care services in America are provided efficiently, but not fairly?

Accepted Answer

The assertion that the health market is

Question 3

-The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is

Accepted Answer

A) $0.00. 
B) $0.50. 
C) $1.00. 
D) more than $1.00. 
E) None of the above answers is correct. 
A) $0.00. 
B) $0.50. 
C) $1.00. 
D) more than $1.00. 
E) None of the above answers is correct.

Question 4

-In the above figure, the market is at its equilibrium. Area B 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 5

The concept of "the invisible hand" suggests that

Accepted Answer

A) products are produced out of a seller's sense of charity. 
B) when the seller is better off, the buyer is worse off. 
C) sellers exploit consumers with high prices. 
D) buyers and sellers are self-interested. 
E) the command system is the only way of efficiently allocating resources. 
A) products are produced out of a seller's sense of charity. 
B) when the seller is better off, the buyer is worse off. 
C) sellers exploit consumers with high prices. 
D) buyers and sellers are self-interested. 
E) the command system is the only way of efficiently allocating resources.

Question 6

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is ________ and Scott's marginal cost is ________.

Accepted Answer

A) $40; $10 
B) $40; $40 
C) $90; $50 
D) None of the above answers is correct. 
A) $40; $10 
B) $40; $40 
C) $90; $50 
D) None of the above answers is correct.

Question 7

What is producer surplus?

Accepted Answer

Producer surplus equals the di

Question 8

-In the figure above, suppose the market is at equilibrium. Then area A is the

Accepted Answer

A) marginal benefit. 
B) marginal cost. 
C) amount of the consumer surplus. 
D) amount of the producer surplus. 
E) deadweight loss. 
A) marginal benefit. 
B) marginal cost. 
C) amount of the consumer surplus. 
D) amount of the producer surplus. 
E) deadweight loss.

Question 9

The fair results approach to fairness

Accepted Answer

A) requires property rights and voluntary exchange. 
B) supports transferring income from the rich and giving it to the poor. 
C) requires efficient market outcomes. 
D) ensures that marginal cost equals marginal benefit. 
E) never creates a big tradeoff. 
A) requires property rights and voluntary exchange. 
B) supports transferring income from the rich and giving it to the poor. 
C) requires efficient market outcomes. 
D) ensures that marginal cost equals marginal benefit. 
E) never creates a big tradeoff.

Question 10

Briefly describe the concept of the "invisible hand."

Accepted Answer

The invisible hand suggests that a compe

Question 11

When the price rises and the supply curve does not shift, the firms' producer surplus ________. When the price falls and the supply curve does not shift, the firms' producer surplus ________.

Accepted Answer

A) increases; decreases 
B) decreases; increases 
C) decreases; decreases 
D) increases; increases 
E) does not change; does not change 
A) increases; decreases 
B) decreases; increases 
C) decreases; decreases 
D) increases; increases 
E) does not change; does not change

Question 12

6.6 Chapter Figures
   
The figure above shows the PPF, marginal cost curve, and marginal benefit curve for pizza.
-In the figure above, when 2,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced.

Accepted Answer

A) exceeds its marginal cost; too little 
B) exceeds its marginal cost; too much 
C) is below its marginal cost; too much 
D) is below its marginal cost; too little 
E) equals its marginal cost; the efficient quantity of 
A) exceeds its marginal cost; too little 
B) exceeds its marginal cost; too much 
C) is below its marginal cost; too much 
D) is below its marginal cost; too little 
E) equals its marginal cost; the efficient quantity of

Question 13

-The figure above shows the market for hot dogs.
a. What is the maximum price consumers are willing to pay for the 25th hot dog?
b. What is the efficient quantity?
c. Suppose that the production was limited to 25 hot dogs. In the figure, indicate the amount of the deadweight loss.

Accepted Answer

a. Consumers are willing to pay a maximu

Question 14

Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor to help him. Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria?
 Why this amount of hours?
 What is Jason's consumer surplus, if any, from the tutoring?
 What is Maria's consumer surplus from the tutoring?

Accepted Answer

Jason will hire Maria for 4 hours of tut

Question 15

The figure above shows the demand curve for pizza and the market price of pizza.
-In the figure above, the total benefit from pizza is ________ per day.

Accepted Answer

A) $100,000 
B) $50,000 
C) $125,000 
D) $150,000 
E) None of the above answers is correct. 
A) $100,000 
B) $50,000 
C) $125,000 
D) $150,000 
E) None of the above answers is correct.

Question 16

The marginal cost of a good or service

Accepted Answer

A) can be calculated from the marginal benefit of that good or service. 
B) decreases as more of the good or service is produced. 
C) can be derived from the production possibilities frontier. 
D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping. 
E) None of the above answers are correct. 
A) can be calculated from the marginal benefit of that good or service. 
B) decreases as more of the good or service is produced. 
C) can be derived from the production possibilities frontier. 
D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping. 
E) None of the above answers are correct.

Question 17

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 18

When marginal benefit exceeds marginal cost in a market,

Accepted Answer

A) only consumer surplus is reduced. 
B) only producer surplus is reduced. 
C) consumer surplus and producer surplus are not affected compared to when production is such that marginal cost equals marginal benefit. 
D) the deadweight loss is negative. 
E) None of the above answers is correct. 
A) only consumer surplus is reduced. 
B) only producer surplus is reduced. 
C) consumer surplus and producer surplus are not affected compared to when production is such that marginal cost equals marginal benefit. 
D) the deadweight loss is negative. 
E) None of the above answers is correct.

Question 19

Subsidies ________ the price paid by the buyer and ________ the price received by the seller.

Accepted Answer

A) increase, increase 
B) increase, decrease 
C) decrease, increase 
D) decrease, decrease 
E) do not change; increase 
A) increase, increase 
B) increase, decrease 
C) decrease, increase 
D) decrease, decrease 
E) do not change; increase

Question 20

The figure above shows the demand curve for pizza and the market price of pizza.
-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

Producer surplus

How can a person argue that health care services in America are provided efficiently, but not fairly?

-The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is

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

The concept of "the invisible hand" suggests that

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is and Scott's marginal cost is .

What is producer surplus?

-In the figure above, suppose the market is at equilibrium. Then area A is the

The fair results approach to fairness

Briefly describe the concept of the "invisible hand."

When the price rises and the supply curve does not shift, the firms' producer surplus . When the price falls and the supply curve does not shift, the firms' producer surplus .

6.6 Chapter Figures The figure above shows the PPF, marginal cost curve, and marginal benefit curve for pizza. -In the figure above, when 2,000 pizzas are produced, the marginal benefit of a pizza its marginal cost, which means pizza is being produced.

-The figure above shows the market for hot dogs. a. What is the maximum price consumers are willing to pay for the 25th hot dog? b. What is the efficient quantity? c. Suppose that the production was limited to 25 hot dogs. In the figure, indicate the amount of the deadweight loss.

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above, the total benefit from pizza is ________ per day.

The marginal cost of a good or service

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?

When marginal benefit exceeds marginal cost in a market,

Subsidies the price paid by the buyer and the price received by the seller.

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above, how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 6: Efficiency and Fairness of Markets

Producer surplus

How can a person argue that health care services in America are provided efficiently, but not fairly?

-The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 20,000th soda is

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

The concept of "the invisible hand" suggests that

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is ________ and Scott's marginal cost is ________.

What is producer surplus?

-In the figure above, suppose the market is at equilibrium. Then area A is the

The fair results approach to fairness

Briefly describe the concept of the "invisible hand."

When the price rises and the supply curve does not shift, the firms' producer surplus ________. When the price falls and the supply curve does not shift, the firms' producer surplus ________.

6.6 Chapter Figures The figure above shows the PPF, marginal cost curve, and marginal benefit curve for pizza. -In the figure above, when 2,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced.

-The figure above shows the market for hot dogs. a. What is the maximum price consumers are willing to pay for the 25th hot dog? b. What is the efficient quantity? c. Suppose that the production was limited to 25 hot dogs. In the figure, indicate the amount of the deadweight loss.

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above, the total benefit from pizza is ________ per day.

The marginal cost of a good or service

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?

When marginal benefit exceeds marginal cost in a market,

Subsidies ________ the price paid by the buyer and ________ the price received by the seller.

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above, how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is and Scott's marginal cost is .

When the price rises and the supply curve does not shift, the firms' producer surplus . When the price falls and the supply curve does not shift, the firms' producer surplus .

6.6 Chapter Figures The figure above shows the PPF, marginal cost curve, and marginal benefit curve for pizza. -In the figure above, when 2,000 pizzas are produced, the marginal benefit of a pizza its marginal cost, which means pizza is being produced.

Subsidies the price paid by the buyer and the price received by the seller.