Question 1

At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost.

Accepted Answer

A) is equal to 
B) is greater than 
C) is less than 
D) has no necessary relationship with 
E) is equal to the marginal deadweight loss which is equal to 
A) is equal to 
B) is greater than 
C) is less than 
D) has no necessary relationship with 
E) is equal to the marginal deadweight loss which is equal to

Question 2

Which of the following is true regarding a demand curve?
I. The demand curve is also the marginal benefit curve.
Ii. The demand curve shows the dollars' worth of other goods that people are willing to forgo to consume another unit of the good.
Iii. The demand curve shows the maximum price that people are willing to pay for another unit of a good.

Accepted Answer

A) i and ii 
B) i and iii 
C) ii and iii 
D) i, ii, and iii 
E) i only 
A) i and ii 
B) i and iii 
C) ii and iii 
D) i, ii, and iii 
E) i only

Question 3

Outcomes are fair according to the

Accepted Answer

A) rules view if private property rights are established and trade is voluntary. 
B) results view if private property rights are established and trade is voluntary. 
C) rules view if there is not too much inequality. 
D) results view if there is not a big tradeoff. 
E) results view if there is equality of opportunity. 
A) rules view if private property rights are established and trade is voluntary. 
B) results view if private property rights are established and trade is voluntary. 
C) rules view if there is not too much inequality. 
D) results view if there is not a big tradeoff. 
E) results view if there is equality of opportunity.

Question 4

Although Jack and Vanessa were equally qualified, Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager. The resource, the management position, was allocated in what manner?

Accepted Answer

A) sharing equally 
B) contest 
C) personal characteristics 
D) command 
E) lottery 
A) sharing equally 
B) contest 
C) personal characteristics 
D) command 
E) lottery

Question 5

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

Accepted Answer

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

Question 6

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

Accepted Answer

@#IMG-DLM& A marginal benefit curve is drawn as a

Question 7

-The figure above shows the market for pizza.
a. If the price of a slice of pizza is $3, what is the consumer surplus of the 50th slice?
b. If the price of a slice of pizza is $3, what is the producer surplus of the 50th slice
c. What is the efficient quantity?
 What is the equilibrium quantity?
 What is the deadweight loss when the equilibrium quantity is produced?

Accepted Answer

a. Consumer surplus is the distance betw

Question 8

If a landlord will rent an apartment only to married couples, the landlord is using a ________ allocation method.

Accepted Answer

A) majority rule 
B) market price 
C) contest 
D) personal characteristics 
E) command 
A) majority rule 
B) market price 
C) contest 
D) personal characteristics 
E) command

Question 9

$$\begin{array} { c c c } 
\text { Possibility } & \begin{array} { c } 
\text { Bread } \
\text { (number) }
\end{array} & \begin{array} { c } 
\text { Books } \
\text { (number) }
\end{array} \
\hline \text { A } & 0 & 1,000 \
\text { B } & 100 & 900 \
\text { C } & 200 & 700 \
\text { D } & 300 & 400 \
\text { E } & 400 & 0 \
\hline
\end{array}$$
-The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,

Accepted Answer

A) production efficiency occurs because resources are not overused. 
B) allocative efficiency is achieved because both goods are produced. 
C) production efficiency is not achieved. 
D) allocative and production efficiency are both achieved. 
E) production efficiency is not achieved but allocative efficiency might be achieved. 
A) production efficiency occurs because resources are not overused. 
B) allocative efficiency is achieved because both goods are produced. 
C) production efficiency is not achieved. 
D) allocative and production efficiency are both achieved. 
E) production efficiency is not achieved but allocative efficiency might be achieved.

Question 10

-The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is

Accepted Answer

A) $0.00. 
B) $0.50. 
C) $1.00. 
D) $1.50. 
E) $2.50 
A) $0.00. 
B) $0.50. 
C) $1.00. 
D) $1.50. 
E) $2.50

Question 11

-In the figure above, at the market price of $15, the consumer surplus equals

Accepted Answer

A) $10,000. 
B) $30,000. 
C) $40,000. 
D) 2,000 units 
E) $20,000. 
A) $10,000. 
B) $30,000. 
C) $40,000. 
D) 2,000 units 
E) $20,000.

Question 12

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.

At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost.

Outcomes are fair according to the

Although Jack and Vanessa were equally qualified, Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager. The resource, the management position, was allocated in what manner?

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

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

If a landlord will rent an apartment only to married couples, the landlord is using a ________ allocation method.

Possibility Bread (number) Books (number) A 0 1,000 B 100 900 C 200 700 D 300 400 E 400 0 -The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,

-The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is

-In the figure above, at the market price of $15, the consumer surplus equals

A point on the supply curve can illustrate the

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

At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost.

Outcomes are fair according to the

Although Jack and Vanessa were equally qualified, Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager. The resource, the management position, was allocated in what manner?

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

Draw and describe a marginal benefit curve for slices of pizza where the opportunity cost of consuming a slice of pizza is a taco.

If a landlord will rent an apartment only to married couples, the landlord is using a ________ allocation method.

Possibility Bread (number) Books (number) A 0 1,000 B 100 900 C 200 700 D 300 400 E 400 0 -The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,

-The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is

-In the figure above, at the market price of $15, the consumer surplus equals

A point on the supply curve can illustrate the

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