Question 1

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

Accepted Answer

A)  zero 
B)  the area between the supply curve and the demand curve 
C)  the area above the supply curve 
D)  the area under the demand curve 
A)  zero 
B)  the area between the supply curve and the demand curve 
C)  the area above the supply curve 
D)  the area under the demand curve

Question 2

The excess burden of a tax is also a deadweight loss.

Accepted Answer

A) True 
 B)False

Question 3

-Refer to Figure 5-3. What is the value of the deadweight loss at the equilibrium price of $15?

Accepted Answer

A)  $0 
B)  $40 
C)  $60 
D)  $100 
A)  $0 
B)  $40 
C)  $60 
D)  $100

Question 4

Deadweight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

Accepted Answer

A) True 
 B)False

Question 5

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the value of consumer surplus after the imposition of the price floor?

Accepted Answer

A)  $6000 
B)  $30 000 
C)  $100 000 
D)  $240 000 
A)  $6000 
B)  $30 000 
C)  $100 000 
D)  $240 000

Question 6

-Refer to Table 5-7. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?

Accepted Answer

A)  $5 thousand 
B)  $12.5 thousand 
C)  $25 thousand 
D)  $37.5 thousand 
A)  $5 thousand 
B)  $12.5 thousand 
C)  $25 thousand 
D)  $37.5 thousand

Question 7

-Refer to Table 5-4. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labour demanded?

Accepted Answer

A)  80 000 
B)  550 000 
C)  630 000 
D)  1 180 000 
A)  80 000 
B)  550 000 
C)  630 000 
D)  1 180 000

Question 8

-Refer to Figure 5-1. Arnold's marginal benefit from consuming the second burrito is

Accepted Answer

A)  $1.00. 
B)  $1.50. 
C)  $2.00. 
D)  $4.50. 
A)  $1.00. 
B)  $1.50. 
C)  $2.00. 
D)  $4.50.

Question 9

-Refer to Figure 5-5. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

Accepted Answer

A)  $40 000 
B)  $100 000 
C)  $125 000 
D)  $140 000 
A)  $40 000 
B)  $100 000 
C)  $125 000 
D)  $140 000

Question 10

What area on a supply and demand graph represents consumer surplus?

Accepted Answer

Consumer surplus is

Question 11

-Refer to Figure 5-3. What is the value of consumer surplus at a price of $18?

Accepted Answer

A)  $60 
B)  $120 
C)  $180 
D)  $240 
A)  $60 
B)  $120 
C)  $180 
D)  $240

Question 12

If the price of chewing gum is represented by equation P = 25 - 0.5 QD, then the corresponding quantity of chewing gum demanded is represented by the equation

Accepted Answer

A)  QD = 2P - 0.5.  
B)  QD = 0.5P + 25.  
C)  QD = 50 -2P.  
D)  QD = -5 + 10P. 
A)  QD = 2P - 0.5.  
B)  QD = 0.5P + 25.  
C)  QD = 50 -2P.  
D)  QD = -5 + 10P.

Question 13

-Refer to Table 5-6. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of consumer surplus?

Accepted Answer

A)  $100 thousand 
B)  $200 thousand 
C)  $600 thousand 
D)  $800 thousand 
A)  $100 thousand 
B)  $200 thousand 
C)  $600 thousand 
D)  $800 thousand

Question 14

What is the difference between scarcity and a shortage?

Accepted Answer

Scarcity is a situation in which unlimit

Question 15

-Refer to Table 5-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labour supplied?

Accepted Answer

A)  40 000 
B)  570 000 
C)  610 000 
D)  1 180 000 
A)  40 000 
B)  570 000 
C)  610 000 
D)  1 180 000

Question 16

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.

Accepted Answer

A price ceiling is a legally determined

Question 17

Companies in the sharing economy have the potential to lower the equilibrium price in their market, and by doing so increase efficiency. This would have a tendency to

Accepted Answer

A)  increase producer surplus and increase deadweight loss. 
B)  increase consumer surplus and decrease deadweight loss. 
C)  decrease consumer surplus and decrease producer surplus. 
D)  maximise consumer surplus and minimise producer surplus. 
A)  increase producer surplus and increase deadweight loss. 
B)  increase consumer surplus and decrease deadweight loss. 
C)  decrease consumer surplus and decrease producer surplus. 
D)  maximise consumer surplus and minimise producer surplus.

Question 18

-Refer to Figure 5-1. If the market price is $2.00, what is the consumer surplus on the first burrito?

Accepted Answer

A)  $0.50 
B)  $1.00 
C)  $2.00 
D)  $7.50 
A)  $0.50 
B)  $1.00 
C)  $2.00 
D)  $7.50

Question 19

-Refer to Table 5-4. Suppose that the quantity of labour supplied decreases by 80 000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Accepted Answer

A)  W = $8.50; Q = 550 000 
B)  W = $12.50; Q = 550 000 
C)  W = $8.50; Q = 630 000 
D)  W = $11.50; Q = 610 000 
A)  W = $8.50; Q = 550 000 
B)  W = $12.50; Q = 550 000 
C)  W = $8.50; Q = 630 000 
D)  W = $11.50; Q = 610 000

Question 20

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the quantity of apartments demanded at the new price?

Accepted Answer

A)  0 
B)  200 
C)  300 
D)  500 
A)  0 
B)  200 
C)  300 
D)  500

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

The excess burden of a tax is also a deadweight loss.

-Refer to Figure 5-3. What is the value of the deadweight loss at the equilibrium price of $15?

Deadweight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the value of consumer surplus after the imposition of the price floor?

-Refer to Table 5-7. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?

-Refer to Table 5-4. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labour demanded?

-Refer to Figure 5-1. Arnold's marginal benefit from consuming the second burrito is

-Refer to Figure 5-5. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

What area on a supply and demand graph represents consumer surplus?

-Refer to Figure 5-3. What is the value of consumer surplus at a price of $18?

If the price of chewing gum is represented by equation P = 25 - 0.5 Q_D, then the corresponding quantity of chewing gum demanded is represented by the equation

-Refer to Table 5-6. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of consumer surplus?

What is the difference between scarcity and a shortage?

-Refer to Table 5-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labour supplied?

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.

Companies in the sharing economy have the potential to lower the equilibrium price in their market, and by doing so increase efficiency. This would have a tendency to

-Refer to Figure 5-1. If the market price is $2.00, what is the consumer surplus on the first burrito?

-Refer to Table 5-4. Suppose that the quantity of labour supplied decreases by 80 000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the quantity of apartments demanded at the new price?

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 5: Economic Efficiency , Government Price Setting and Taxes

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

The excess burden of a tax is also a deadweight loss.

-Refer to Figure 5-3. What is the value of the deadweight loss at the equilibrium price of $15?

Deadweight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the value of consumer surplus after the imposition of the price floor?

-Refer to Table 5-7. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?

-Refer to Table 5-4. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labour demanded?

-Refer to Figure 5-1. Arnold's marginal benefit from consuming the second burrito is

-Refer to Figure 5-5. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?

What area on a supply and demand graph represents consumer surplus?

-Refer to Figure 5-3. What is the value of consumer surplus at a price of $18?

If the price of chewing gum is represented by equation P = 25 - 0.5 QD, then the corresponding quantity of chewing gum demanded is represented by the equation

-Refer to Table 5-6. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of consumer surplus?

What is the difference between scarcity and a shortage?

-Refer to Table 5-4. If a minimum wage of $11.50 an hour is mandated, what is the quantity of labour supplied?

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.

Companies in the sharing economy have the potential to lower the equilibrium price in their market, and by doing so increase efficiency. This would have a tendency to

-Refer to Figure 5-1. If the market price is $2.00, what is the consumer surplus on the first burrito?

-Refer to Table 5-4. Suppose that the quantity of labour supplied decreases by 80 000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

-Refer to Figure 5-5. Suppose that instead of a rent ceiling, the government imposed a price floor of $2000 per month for apartments. What is the quantity of apartments demanded at the new price?

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

If the price of chewing gum is represented by equation P = 25 - 0.5 Q_D, then the corresponding quantity of chewing gum demanded is represented by the equation