Question 1

The opportunity cost to the firm of producing one more unit of output is also called marginal cost.

Accepted Answer

A) True 
 B)False

Question 2

-Which area in the above figure is the deadweight loss if 100 snowboards are produced?

Accepted Answer

A)  A + B + C 
B)  D + E + F 
C)  C + E 
D)  There is no deadweight loss when 100 snowboards are produced. 
A)  A + B + C 
B)  D + E + F 
C)  C + E 
D)  There is no deadweight loss when 100 snowboards are produced.

Question 3

-In the above figure, the individual's consumer surplus will be highest if

Accepted Answer

A)  the price of ice cream is $5 per gallon. 
B)  the price of ice cream is $3 per gallon. 
C)  the price of ice cream is $2 per gallon. 
D)  ice cream is free. 
A)  the price of ice cream is $5 per gallon. 
B)  the price of ice cream is $3 per gallon. 
C)  the price of ice cream is $2 per gallon. 
D)  ice cream is free.

Question 4

-In the above table, what is the maximum price that consumers are willing to pay for the 200th brownie?

Accepted Answer

A)  0 
B)  20¢ 
C)  60¢ 
D)  80¢ 
A)  0 
B)  20¢ 
C)  60¢ 
D)  80¢

Question 5

A market demand curve can be constructed by

Accepted Answer

A)  adding the prices all consumers will pay for any given quantity. 
B)  adding the quantities that all consumers buy at each price. 
C)  adding the quantities that a consumer buys at the highest price. 
D)  None of the above answers is correct. 
A)  adding the prices all consumers will pay for any given quantity. 
B)  adding the quantities that all consumers buy at each price. 
C)  adding the quantities that a consumer buys at the highest price. 
D)  None of the above answers is correct.

Question 6

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market.  
-Using the table, what is the minimum price that Fred is willing to accept to supply 400 slices of pizza per month?

Accepted Answer

A)  $3.50 
B)  $2.50 
C)  $3 
D)  $4 
A)  $3.50 
B)  $2.50 
C)  $3 
D)  $4

Question 7

A public good can be consumed by

Accepted Answer

A)  only one person who does not have to pay for it. 
B)  only one person who has to pay for it. 
C)  everyone simultaneously, as long as they pay for it. 
D)  everyone simultaneously, even if they do not pay for it. 
A)  only one person who does not have to pay for it. 
B)  only one person who has to pay for it. 
C)  everyone simultaneously, as long as they pay for it. 
D)  everyone simultaneously, even if they do not pay for it.

Question 8

Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is

Accepted Answer

A)  $20. 
B)  $50. 
C)  $30. 
D)  $80. 
A)  $20. 
B)  $50. 
C)  $30. 
D)  $80.

Question 9

Which of the following is a CORRECT statement?

Accepted Answer

A)  Producer surplus is an external benefit. 
B)  Consumer surplus is an external benefit. 
C)  A government subsidy paid to a producer is an external benefit. 
D)  None of the above statements are correct. 
A)  Producer surplus is an external benefit. 
B)  Consumer surplus is an external benefit. 
C)  A government subsidy paid to a producer is an external benefit. 
D)  None of the above statements are correct.

Question 10

Often people trying to withdraw money from their bank must wait in line, which reflects a ________ allocation method.

Accepted Answer

A)  first-come, first-served 
B)  market price 
C)  contest 
D)  command 
A)  first-come, first-served 
B)  market price 
C)  contest 
D)  command

Question 11

When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus.

Accepted Answer

A)  larger than 
B)  equal to 
C)  less than 
D)  None of the above answers are correct. 
A)  larger than 
B)  equal to 
C)  less than 
D)  None of the above answers are correct.

Question 12

The symmetry principle in economics means that

Accepted Answer

A)  all individuals must have similar outcomes. 
B)  all similar individuals must be treated similarly. 
C)  individuals must have opposite outcomes. 
D)  similar individuals must have similar outcomes. 
A)  all individuals must have similar outcomes. 
B)  all similar individuals must be treated similarly. 
C)  individuals must have opposite outcomes. 
D)  similar individuals must have similar outcomes.

Question 13

-The figure above shows the market supply curve for pizzas.
a) What is the marginal social cost of the 20th pizza?
b) What is the minimum supply price of the 20th pizza?
c) If the price is $6 per pizza, what is the producer surplus for the 20th pizza?
d) If the price is $6 per pizza, what is the total producer surplus?
e) If the price is $8 per pizza, what is the total producer surplus?
f) If the price is $10 per pizza, what is the total producer surplus?

Accepted Answer

a) The marginal cost of the 20th pizza i

Question 14

Why is a competitive market efficient?

Accepted Answer

Efficiency is attained when production i

Question 15

Bill Gates is a founder of Microsoft and the world's richest individual. Suppose Microsoft sells more software and Mr. Gates acquires another billion dollars in wealth. Simultaneously, suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars' worth of antiques. Using the "it's not fair if the rules aren't fair" approach to fairness, is Mr. Gates' acquisition of additional wealth fair? Is the (poor) thief's acquisition fair?

Accepted Answer

In order for Mr. Gates to become richer,

Question 16

Colorado State University allocates 10,000 tickets for each home game to students at no cost. Students are required to stand in line and prove they are a full time student to receive a free ticket. How is the scarce resource in this example allocated?

Accepted Answer

A)  first-come, first-served 
B)  market price 
C)  contest 
D)  lottery 
A)  first-come, first-served 
B)  market price 
C)  contest 
D)  lottery

Question 17

-In the above figure, if the market produces the efficient amount of purses then producer surplus equals

Accepted Answer

A)  triangle bcd. 
B)  triangle adc. 
C)  rectangle bcde. 
D)  trapezoid adec. 
A)  triangle bcd. 
B)  triangle adc. 
C)  rectangle bcde. 
D)  trapezoid adec.

Question 18

A cost borne not by the producer but by other people is called ________ cost.

Accepted Answer

A)  an unregulated 
B)  an external 
C)  a consumer 
D)  a non-production 
A)  an unregulated 
B)  an external 
C)  a consumer 
D)  a non-production

Question 19

The market demand curve is constructed by adding the

Accepted Answer

A)  quantities demanded by each individual at each price. 
B)  prices that each individual is willing to pay at each quantity. 
C)  Neither answer A nor answer B is correct. 
D)  Both answer A and answer B are correct. 
A)  quantities demanded by each individual at each price. 
B)  prices that each individual is willing to pay at each quantity. 
C)  Neither answer A nor answer B is correct. 
D)  Both answer A and answer B are correct.

Question 20

Explain the utilitarianism principle. How is it deficient?

Accepted Answer

Utilitarianism is a principle that state

The opportunity cost to the firm of producing one more unit of output is also called marginal cost.

-Which area in the above figure is the deadweight loss if 100 snowboards are produced?

-In the above figure, the individual's consumer surplus will be highest if

-In the above table, what is the maximum price that consumers are willing to pay for the 200th brownie?

A market demand curve can be constructed by

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market. -Using the table, what is the minimum price that Fred is willing to accept to supply 400 slices of pizza per month?

A public good can be consumed by

Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is

Which of the following is a CORRECT statement?

Often people trying to withdraw money from their bank must wait in line, which reflects a ________ allocation method.

When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus.

The symmetry principle in economics means that

Why is a competitive market efficient?

Colorado State University allocates 10,000 tickets for each home game to students at no cost. Students are required to stand in line and prove they are a full time student to receive a free ticket. How is the scarce resource in this example allocated?

-In the above figure, if the market produces the efficient amount of purses then producer surplus equals

A cost borne not by the producer but by other people is called ________ cost.

The market demand curve is constructed by adding the

Explain the utilitarianism principle. How is it deficient?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 5: Efficiency and Equity

The opportunity cost to the firm of producing one more unit of output is also called marginal cost.

-Which area in the above figure is the deadweight loss if 100 snowboards are produced?

-In the above figure, the individual's consumer surplus will be highest if

-In the above table, what is the maximum price that consumers are willing to pay for the 200th brownie?

A market demand curve can be constructed by

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market. -Using the table, what is the minimum price that Fred is willing to accept to supply 400 slices of pizza per month?

A public good can be consumed by

Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is

Which of the following is a CORRECT statement?

Often people trying to withdraw money from their bank must wait in line, which reflects a ________ allocation method.

When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus.

The symmetry principle in economics means that

Why is a competitive market efficient?

Colorado State University allocates 10,000 tickets for each home game to students at no cost. Students are required to stand in line and prove they are a full time student to receive a free ticket. How is the scarce resource in this example allocated?

-In the above figure, if the market produces the efficient amount of purses then producer surplus equals

A cost borne not by the producer but by other people is called ________ cost.

The market demand curve is constructed by adding the

Explain the utilitarianism principle. How is it deficient?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters