Exam 6: Markets, Maximizers, and Efficiency

Use the following to answer question(s): Surplus and Demand -(Exhibit: Surplus and Demand) The amount by which the total benefits to consumers exceeds their total expenditure is called _______ and is depicted at quantity OE by the area _______ .

Use the following for questions 111-115. -(Exhibit: The Demand for Golf Balls) Assume that 2 dozen golf balls are purchased for $16 per dozen.Consumer surplus is:

The Case in Point on gift giving suggests that:

A characteristic of a competitive free market is that, if external costs exist, they:

The _______ is the amount by which an additional unit of activity increases its cost.

Use the following to answer question(s): Net Benefit -(Exhibit: Net Benefit) The equilibrium price will be _______ and the equilibrium quantity will be ________.

If the price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and you have $5 to spend on both goods, the maximum quantity of peanuts that you can purchase is _______ bags.

In our society, a good for which exclusion is NOT possible is:

The tendency of people or firms to consume a public good without paying for it is the ________ problem.

An economist might say that the United States doesn't have enough oil spills in its rivers if it were determined that:

Use the following for questions 55-59. Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit -(Exhibit: Marginal Benefit, Marginal Cost, and Net Benefit) In Panel (c), if activity level is at J, then there will be a deadweight loss of _______ and a net benefit of _______ .

Use the following to answer question(s): Measuring Consumer Surplus -(Exhibit: Measuring Consumer Surplus) If pizzas were free, your consumer surplus would be:

Use the following to answer question(s): Model of a Competitive Market -(Exhibit: Model of a Competitive Market) If a tax is imposed on sellers, the equilibrium price will _______ and the equilibrium quantity will _______ .

If the price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and you have $10 to spend and decide to purchase 8 bags of peanuts, the maximum quantity of popcorn that you can purchase is _______ boxes.

If the marginal benefit received from a good is greater than the marginal cost of production, then:

According to the marginal decision rule, if marginal benefit:

In order to maximize net benefit, consumers and firms evaluate each activity at the:

Use the following to answer question(s): Surplus and Supply -(Exhibit: Surplus and Supply) The supply curve in the exhibit can be considered to be a ________ curve.

It is clear that dry-cleaning establishments are a major source of air pollution.What can you conclude about the price and output of dry-cleaning services? Why does excess pollution occur and what can be done about it?

Discuss and explain the terms efficiency, inefficiency, the efficiency condition, equitable and inequitable, and income distribution.