Question 1

In general,the marginal benefit curve

Accepted Answer

A) has a positive slope. 
B) has a negative slope. 
C) is horizontal. 
D) is vertical. 
E) is concave. 
A) has a positive slope. 
B) has a negative slope. 
C) is horizontal. 
D) is vertical. 
E) is concave.

Question 2

Economists conclude that the only way to measure fairness is

Accepted Answer

A) to insure that the rules are fair. 
B) to insure that the result is fair. 
C) to insure that both the rules and the result are fair. 
D) to compare the allocatively efficient quantity to the equilibrium quantity. 
E) None of the above answers is correct. 
A) to insure that the rules are fair. 
B) to insure that the result is fair. 
C) to insure that both the rules and the result are fair. 
D) to compare the allocatively efficient quantity to the equilibrium quantity. 
E) None of the above answers is correct.

Question 3

Which of the following is an example in which "the big tradeoff" can occur?

Accepted Answer

A) The government redistributes income from the rich to the poor. 
B) Ford increases the price of a pickup truck. 
C) A basketball player signs a $5 million contract. 
D) A college lowers tuition. 
E) The price of personal computers falls year after year. 
A) The government redistributes income from the rich to the poor. 
B) Ford increases the price of a pickup truck. 
C) A basketball player signs a $5 million contract. 
D) A college lowers tuition. 
E) The price of personal computers falls year after year.

Question 4

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents:
a.consumer surplus?
b.producer surplus?

Accepted Answer

The answer of  
-The figure above shows the supply...

Question 5

Consumer surplus is the area

Accepted Answer

A) below the demand curve and above the market price. 
B) below the supply curve and above the market price. 
C) above the demand curve and below the market price. 
D) above the supply curve and below the market price. 
E) below the demand curve and above the supply curve. 
A) below the demand curve and above the market price. 
B) below the supply curve and above the market price. 
C) above the demand curve and below the market price. 
D) above the supply curve and below the market price. 
E) below the demand curve and above the supply curve.

Question 6

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

Accepted Answer

A) market price. 
B) first-come,first-served. 
C) sharing equally. 
D) force. 
E) personal characteristics. 
A) market price. 
B) first-come,first-served. 
C) sharing equally. 
D) force. 
E) personal characteristics.

Question 7

When the price rises and the supply curve does not shift,the firms' producer surplus ________.When the price falls and the supply curve does not shift,the firms' producer surplus ________.

Accepted Answer

A) increases;decreases 
B) decreases;increases 
C) decreases;decreases 
D) increases;increases 
E) does not change;does not change 
A) increases;decreases 
B) decreases;increases 
C) decreases;decreases 
D) increases;increases 
E) does not change;does not change

Question 8

The figure above shows the market for pizza.
-In the figure above,when the market is in equilibrium,marginal benefit ________ marginal cost,so the quantity of pizza produced is ________.

Accepted Answer

A) equals;efficient 
B) exceeds;efficient 
C) is below;efficient 
D) is below;not efficient 
E) exceeds;not efficient 
A) equals;efficient 
B) exceeds;efficient 
C) is below;efficient 
D) is below;not efficient 
E) exceeds;not efficient

Question 9

Suppose Jennifer derives $100 in marginal benefits from her first skiing trip and $80 from her third trip.Her marginal benefit from her second trip is likely to be

Accepted Answer

A) more than $100. 
B) between $100 and $80. 
C) between $79 and $51. 
D) less than $51. 
E) some amount that cannot be calculated without additional information. 
A) more than $100. 
B) between $100 and $80. 
C) between $79 and $51. 
D) less than $51. 
E) some amount that cannot be calculated without additional information.

Question 10

At a competitive market equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,
I.consumer surplus is minimized.
Ii.marginal cost equals marginal benefit.
Iii.resources are efficiently used.
Iv.producer surplus is minimized.

Accepted Answer

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

Question 11

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

Accepted Answer

A) $15. 
B) $10. 
C) $40. 
D) $20. 
E) $50. 
A) $15. 
B) $10. 
C) $40. 
D) $20. 
E) $50.

Question 12

Allocating resources by the order of someone in authority is a ________ allocation method.

Accepted Answer

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

Question 13

A supply curve is the same as a

Accepted Answer

A) total cost curve. 
B) marginal cost curve. 
C) total benefit curve. 
D) marginal benefit curve. 
E) deadweight loss curve. 
A) total cost curve. 
B) marginal cost curve. 
C) total benefit curve. 
D) marginal benefit curve. 
E) deadweight loss curve.

Question 14

-In the figure above,suppose the market is at equilibrium.Then area B is the

Accepted Answer

A) marginal benefit. 
B) marginal cost. 
C) amount of the consumer surplus. 
D) amount of the producer surplus. 
E) deadweight loss. 
A) marginal benefit. 
B) marginal cost. 
C) amount of the consumer surplus. 
D) amount of the producer surplus. 
E) deadweight loss.

Question 15

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

Accepted Answer

The statement is tru

Question 16

-The figure above shows the market for brooms.If 800 brooms are produced,

Accepted Answer

A) marginal cost exceeds marginal benefit. 
B) a deadweight loss does not occur because everyone who wants to buy a broom can. 
C) the "big tradeoff" occurs. 
D) value exceeds price. 
E) the "fair results" approach to fairness is definitely not violated. 
A) marginal cost exceeds marginal benefit. 
B) a deadweight loss does not occur because everyone who wants to buy a broom can. 
C) the "big tradeoff" occurs. 
D) value exceeds price. 
E) the "fair results" approach to fairness is definitely not violated.

Question 17

How can a person argue that health care services in America are provided efficiently,but not fairly?

Accepted Answer

The assertion that the health market is

Question 18

-The table above shows the production possibilities frontier for the nation of Isolanda.
a.Find the marginal cost of a pound of fish using the above PPF.
b.How does the marginal cost of a pound of fish change as more fish are caught?

Accepted Answer

@#IMG-DLM& a.The table above shows the marginal co

Question 19

What is the impact of a government subsidy to producers?

Accepted Answer

A) Less is produced relative to the efficient level,creating a deadweight loss. 
B) More is produced relative to the efficient level,creating a deadweight loss. 
C) Producer surplus is increased,which creates a larger consumer surplus. 
D) Producers are able to sell the product at a higher price. 
E) Consumers must pay a higher price for the good. 
A) Less is produced relative to the efficient level,creating a deadweight loss. 
B) More is produced relative to the efficient level,creating a deadweight loss. 
C) Producer surplus is increased,which creates a larger consumer surplus. 
D) Producers are able to sell the product at a higher price. 
E) Consumers must pay a higher price for the good.

Question 20

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from all 15 sodas is

Accepted Answer

A) $15.00. 
B) $22.50. 
C) $11.25. 
D) $8.00. 
E) $1.50. 
A) $15.00. 
B) $22.50. 
C) $11.25. 
D) $8.00. 
E) $1.50.

In general,the marginal benefit curve

Economists conclude that the only way to measure fairness is

Which of the following is an example in which "the big tradeoff" can occur?

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents: a.consumer surplus? b.producer surplus?

Consumer surplus is the area

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

When the price rises and the supply curve does not shift,the firms' producer surplus .When the price falls and the supply curve does not shift,the firms' producer surplus .

The figure above shows the market for pizza. -In the figure above,when the market is in equilibrium,marginal benefit marginal cost,so the quantity of pizza produced is .

Suppose Jennifer derives $100 in marginal benefits from her first skiing trip and $80 from her third trip.Her marginal benefit from her second trip is likely to be

At a competitive market equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities, I.consumer surplus is minimized. Ii.marginal cost equals marginal benefit. Iii.resources are efficiently used. Iv.producer surplus is minimized.

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

Allocating resources by the order of someone in authority is a ________ allocation method.

A supply curve is the same as a

-In the figure above,suppose the market is at equilibrium.Then area B is the

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

-The figure above shows the market for brooms.If 800 brooms are produced,

How can a person argue that health care services in America are provided efficiently,but not fairly?

-The table above shows the production possibilities frontier for the nation of Isolanda. a.Find the marginal cost of a pound of fish using the above PPF. b.How does the marginal cost of a pound of fish change as more fish are caught?

What is the impact of a government subsidy to producers?

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from all 15 sodas is

Getting Started

The Usand 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

In general,the marginal benefit curve

Economists conclude that the only way to measure fairness is

Which of the following is an example in which "the big tradeoff" can occur?

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents: a.consumer surplus? b.producer surplus?

Consumer surplus is the area

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

When the price rises and the supply curve does not shift,the firms' producer surplus ________.When the price falls and the supply curve does not shift,the firms' producer surplus ________.

The figure above shows the market for pizza. -In the figure above,when the market is in equilibrium,marginal benefit ________ marginal cost,so the quantity of pizza produced is ________.

Suppose Jennifer derives $100 in marginal benefits from her first skiing trip and $80 from her third trip.Her marginal benefit from her second trip is likely to be

At a competitive market equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities, I.consumer surplus is minimized. Ii.marginal cost equals marginal benefit. Iii.resources are efficiently used. Iv.producer surplus is minimized.

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

Allocating resources by the order of someone in authority is a ________ allocation method.

A supply curve is the same as a

-In the figure above,suppose the market is at equilibrium.Then area B is the

"If there is an inefficient level of nursing care in South America,a deadweight loss exists." Is this statement true or false?

-The figure above shows the market for brooms.If 800 brooms are produced,

How can a person argue that health care services in America are provided efficiently,but not fairly?

-The table above shows the production possibilities frontier for the nation of Isolanda. a.Find the marginal cost of a pound of fish using the above PPF. b.How does the marginal cost of a pound of fish change as more fish are caught?

What is the impact of a government subsidy to producers?

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from all 15 sodas is

Getting Started

The Usand 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

When the price rises and the supply curve does not shift,the firms' producer surplus .When the price falls and the supply curve does not shift,the firms' producer surplus .

The figure above shows the market for pizza. -In the figure above,when the market is in equilibrium,marginal benefit marginal cost,so the quantity of pizza produced is .