Question 1

Figure 5-4  
-Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

Accepted Answer

A)  the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. 
B)  producers should raise the price to $9 in order to sell the quantity demanded of 12 000. 
C)  the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. 
D)  the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. 
A)  the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. 
B)  producers should raise the price to $9 in order to sell the quantity demanded of 12 000. 
C)  the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. 
D)  the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.

Question 2

________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.

Accepted Answer

A)  Marginal cost 
B)  Producer atrophy 
C)  Deadweight loss 
D)  Economic shortage 
A)  Marginal cost 
B)  Producer atrophy 
C)  Deadweight loss 
D)  Economic shortage

Question 3

Table 5-4
   Table 5-4 shows the demand and supply schedules for the labour market in the city of Pixley.
-Refer to Table 5-4.If a minimum wage of $11.50 an hour is mandated,what is the quantity of labour demanded?

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 4

If the demand curve for a product is vertical,any tax increase on the product is paid for entirely by the consumer.

Accepted Answer

A) True 
 B)False

Question 5

Rent control is an example of a price ceiling.

Accepted Answer

A) True 
 B)False

Question 6

If marginal benefit is greater than marginal cost,output is inefficiently high.

Accepted Answer

A) True 
 B)False

Question 7

In a city with rent-controlled apartments,all of the following are true except

Accepted Answer

A)  apartments usually rent for rates lower than the market rate. 
B)  apartments are often in shorter supply than they would be without rent control. 
C)  it usually takes more time to find an apartment than it would without rent control. 
D)  landlords have an incentive to rent more apartments than they would without rent control. 
A)  apartments usually rent for rates lower than the market rate. 
B)  apartments are often in shorter supply than they would be without rent control. 
C)  it usually takes more time to find an apartment than it would without rent control. 
D)  landlords have an incentive to rent more apartments than they would without rent control.

Question 8

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

Accepted Answer

Consumer surplus is

Question 9

Table 5-1
  
-Refer to Table 5-1.The table above lists the highest prices three consumers,Tom,Dick and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of the shirts falls from $28 to $20,

Accepted Answer

A)  consumer surplus increases from $14 to $35. 
B)  Tom will buy two shirts; Dick and Harriet will each buy one shirt. 
C)  consumer surplus will increase from $70 to $95. 
D)  Harriet will receive more consumer surplus than Tom or Dick. 
A)  consumer surplus increases from $14 to $35. 
B)  Tom will buy two shirts; Dick and Harriet will each buy one shirt. 
C)  consumer surplus will increase from $70 to $95. 
D)  Harriet will receive more consumer surplus than Tom or Dick.

Question 10

Which term refers to a legally established minimum price that firms may charge?

Accepted Answer

A)  A price ceiling 
B)  A subsidy 
C)  A price floor 
D)  A tariff 
A)  A price ceiling 
B)  A subsidy 
C)  A price floor 
D)  A tariff

Question 11

Figure 5-4  
-Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Accepted Answer

A)  the deadweight loss is equal to the economic surplus. 
B)  producer surplus equals consumer surplus. 
C)  the marginal benefit of each of the 8000 kilograms of pecans equals $9. 
D)  marginal benefit is equal to marginal cost. 
A)  the deadweight loss is equal to the economic surplus. 
B)  producer surplus equals consumer surplus. 
C)  the marginal benefit of each of the 8000 kilograms of pecans equals $9. 
D)  marginal benefit is equal to marginal cost.

Question 12

Table 5-2
  
-Refer to Table 5-2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $18,

Accepted Answer

A)  Anya and Basil will each buy two tickets. 
B)  Basil will receive $2 of consumer surplus from buying one ticket. 
C)  Anya and Basil receive a total of $26 of consumer surplus from buying one ticket each. No one else will buy a ticket. 
D)  Celeste, Dralon and Esther will receive a total of $34 of consumer surplus since they will buy no tickets. 
A)  Anya and Basil will each buy two tickets. 
B)  Basil will receive $2 of consumer surplus from buying one ticket. 
C)  Anya and Basil receive a total of $26 of consumer surplus from buying one ticket each. No one else will buy a ticket. 
D)  Celeste, Dralon and Esther will receive a total of $34 of consumer surplus since they will buy no tickets.

Question 13

A demand curve shows

Accepted Answer

A)  the willingness of consumers to buy a product at different prices. 
B)  the willingness of consumers to substitute one product for another product. 
C)  the relationship between the price of a product and the demand for the product. 
D)  the relationship between the price of a product and the total benefit consumers receive from the product. 
A)  the willingness of consumers to buy a product at different prices. 
B)  the willingness of consumers to substitute one product for another product. 
C)  the relationship between the price of a product and the demand for the product. 
D)  the relationship between the price of a product and the total benefit consumers receive from the product.

Question 14

Economists refer a to a market where buying and selling take place at prices that violate government price regulations as

Accepted Answer

A)  a black market. 
B)  an outlaw market. 
C)  a non-competitive market. 
D)  a restricted market. 
A)  a black market. 
B)  an outlaw market. 
C)  a non-competitive market. 
D)  a restricted market.

Question 15

The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market.

Accepted Answer

A)  above; above 
B)  above; below 
C)  below; above 
D)  below; below 
A)  above; above 
B)  above; below 
C)  below; above 
D)  below; below

Question 16

Figure 5-1   Figure 5-1 shows Arnold's demand curve for burritos.
-Refer to Figure 5-1.Arnold's marginal benefit from consuming the fourth burrito is

Accepted Answer

A)  $0. 
B)  $1.00. 
C)  $2.50. 
D)  $3.00. 
A)  $0. 
B)  $1.00. 
C)  $2.50. 
D)  $3.00.

Question 17

Figure 5-3   Figure 5-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18.
-Refer to Figure 5-3.What is the value of producer surplus at a price of $18?

Accepted Answer

A)  $240 
B)  $300 
C)  $340 
D)  $720 
A)  $240 
B)  $300 
C)  $340 
D)  $720

Question 18

In a competitive market,the demand curve shows the ________ received by consumers,and the supply curve shows the ________.

Accepted Answer

A)  utility; average cost. 
B)  marginal benefit; marginal cost 
C)  economic surplus; opportunity cost 
D)  net benefit; net cost 
A)  utility; average cost. 
B)  marginal benefit; marginal cost 
C)  economic surplus; opportunity cost 
D)  net benefit; net cost

Question 19

If equilibrium is achieved in a competitive market,

Accepted Answer

A)  there is no deadweight loss. 
B)  the deadweight loss will be maximised. 
C)  the deadweight loss will equal the sum of consumer surplus and producer surplus. 
D)  the deadweight loss will be the same as the opportunity cost of the last unit of output sold. 
A)  there is no deadweight loss. 
B)  the deadweight loss will be maximised. 
C)  the deadweight loss will equal the sum of consumer surplus and producer surplus. 
D)  the deadweight loss will be the same as the opportunity cost of the last unit of output sold.

Question 20

Figure 5-7   Figure 5-7 shows the market for beer. The government plans to impose a unit tax in this market.
-Refer to Figure 5-7.What is the size of the unit tax?

Accepted Answer

A)  $2 
B)  $5 
C)  $7 
D)  $12 
A)  $2 
B)  $5 
C)  $7 
D)  $12

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.

Table 5-4 Table 5-4 shows the demand and supply schedules for the labour market in the city of Pixley. -Refer to Table 5-4.If a minimum wage of $11.50 an hour is mandated,what is the quantity of labour demanded?

If the demand curve for a product is vertical,any tax increase on the product is paid for entirely by the consumer.

Rent control is an example of a price ceiling.

If marginal benefit is greater than marginal cost,output is inefficiently high.

In a city with rent-controlled apartments,all of the following are true except

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

Table 5-1 -Refer to Table 5-1.The table above lists the highest prices three consumers,Tom,Dick and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of the shirts falls from $28 to $20,

Which term refers to a legally established minimum price that firms may charge?

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Table 5-2 -Refer to Table 5-2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $18,

A demand curve shows

Economists refer a to a market where buying and selling take place at prices that violate government price regulations as

The area the market supply curve and the market price is equal to the total amount of producer surplus in a market.

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.Arnold's marginal benefit from consuming the fourth burrito is

Figure 5-3 Figure 5-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18. -Refer to Figure 5-3.What is the value of producer surplus at a price of $18?

In a competitive market,the demand curve shows the received by consumers,and the supply curve shows the .

If equilibrium is achieved in a competitive market,

Figure 5-7 Figure 5-7 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 5-7.What is the size of the unit tax?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 5: The Economics of Healthcare

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.At a price of $3,

________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.

Table 5-4 Table 5-4 shows the demand and supply schedules for the labour market in the city of Pixley. -Refer to Table 5-4.If a minimum wage of $11.50 an hour is mandated,what is the quantity of labour demanded?

If the demand curve for a product is vertical,any tax increase on the product is paid for entirely by the consumer.

Rent control is an example of a price ceiling.

If marginal benefit is greater than marginal cost,output is inefficiently high.

In a city with rent-controlled apartments,all of the following are true except

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

Table 5-1 -Refer to Table 5-1.The table above lists the highest prices three consumers,Tom,Dick and Harriet,are willing to pay for a short-sleeved polo shirt.If the price of the shirts falls from $28 to $20,

Which term refers to a legally established minimum price that firms may charge?

Figure 5-4 -Refer to Figure 5-4.The figure above represents the market for pecans.Assume that this is a competitive market.If 8000 kilograms of pecans are sold,

Table 5-2 -Refer to Table 5-2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one of the tickets is $18,

A demand curve shows

Economists refer a to a market where buying and selling take place at prices that violate government price regulations as

The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market.

Figure 5-1 Figure 5-1 shows Arnold's demand curve for burritos. -Refer to Figure 5-1.Arnold's marginal benefit from consuming the fourth burrito is

Figure 5-3 Figure 5-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18. -Refer to Figure 5-3.What is the value of producer surplus at a price of $18?

In a competitive market,the demand curve shows the ________ received by consumers,and the supply curve shows the ________.

If equilibrium is achieved in a competitive market,

Figure 5-7 Figure 5-7 shows the market for beer. The government plans to impose a unit tax in this market. -Refer to Figure 5-7.What is the size of the unit tax?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

The area the market supply curve and the market price is equal to the total amount of producer surplus in a market.

In a competitive market,the demand curve shows the received by consumers,and the supply curve shows the .