Question 1

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

Question 2

-The figure above shows the demand curve for pizza.
a.What is the marginal benefit of the 20th pizza?
b.What is the maximum price the consumer is willing to pay for the 20th pizza?
c.If the price of a pizza is $6,what is the consumer surplus of the 20th pizza?
d.If the price of a pizza is $10,what is the consumer surplus on all the pizzas consumed?
e.If the price of a pizza is $6,what is the consumer surplus on all the pizzas consumed?

Accepted Answer

a.The marginal benefit of the 20th pizza

Question 3

When a market is efficient,the

Accepted Answer

A) sum of consumer surplus and producer surplus is maximized. 
B) deadweight gain is maximized. 
C) quantity produced is maximized. 
D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible. 
E) total benefit equals the total cost. 
A) sum of consumer surplus and producer surplus is maximized. 
B) deadweight gain is maximized. 
C) quantity produced is maximized. 
D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible. 
E) total benefit equals the total cost.

Question 4

The maximum amount of other goods and services that people are willing to give up in order to get one more unit of a good is defined as the good's

Accepted Answer

A) marginal benefit. 
B) total benefit. 
C) marginal cost. 
D) total cost. 
E) price. 
A) marginal benefit. 
B) total benefit. 
C) marginal cost. 
D) total cost. 
E) price.

Question 5

If a seller charges a buyer the exact price the buyer is willing to pay,then the buyer would

Accepted Answer

A) not buy the good. 
B) receive the maximum consumer surplus. 
C) receive no benefit from the good. 
D) receive no consumer surplus from that unit of the good. 
E) suffer a deadweight loss from buying the good. 
A) not buy the good. 
B) receive the maximum consumer surplus. 
C) receive no benefit from the good. 
D) receive no consumer surplus from that unit of the good. 
E) suffer a deadweight loss from buying the good.

Question 6

What is consumer surplus?

Accepted Answer

Consumer surplus equals the difference b

Question 7

-The figure above represents the competitive market for slices of key lime pie.If the production is 80 slices per day,the cost of the 80th slice is

Accepted Answer

A) less than anyone is willing to pay for it. 
B) more than anyone is willing to pay for it. 
C) equal to what someone is willing to pay for it. 
D) indeterminant. 
E) equal to the deadweight loss from the 80th slice. 
A) less than anyone is willing to pay for it. 
B) more than anyone is willing to pay for it. 
C) equal to what someone is willing to pay for it. 
D) indeterminant. 
E) equal to the deadweight loss from the 80th slice.

Question 8

The figure above shows the supply curve for pizza and the market price of pizza.
-In the figure above,the total revenue from pizza per day is

Accepted Answer

A) $60,000. 
B) $100,000. 
C) $40,000. 
D) $80,000. 
E) $50,000. 
A) $60,000. 
B) $100,000. 
C) $40,000. 
D) $80,000. 
E) $50,000.

Question 9

-The figure above shows the supply curve for pizzas.
a.What is the marginal 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 on the 20th pizza?
d.If the price is $6 per pizza,what is the producer surplus for the total quantity of pizzas produced?
e.If the price is $8 per pizza,what is the producer surplus for the total quantity of pizzas produced?
f.If the price is $10 per pizza,what is the producer surplus for the total quantity of pizzas produced?

Accepted Answer

a.The marginal cost of the 20th pizza is

Question 10

Which of the following is most closely related to the "fair results" approach to fairness?

Accepted Answer

A) efficient resource use 
B) having an equal income distribution 
C) voluntary exchange 
D) the command system of allocating resources 
E) price hikes in a natural disaster 
A) efficient resource use 
B) having an equal income distribution 
C) voluntary exchange 
D) the command system of allocating resources 
E) price hikes in a natural disaster

Question 11

Mary is willing to pay $50 for a Christmas tree,John is willing to pay $45 and Jeff is willing to pay $40.The price of a tree is $40.The total consumer surplus for Mary,John and Jeff taken together is

Accepted Answer

A) $15. 
B) $135. 
C) $40. 
D) $95. 
E) $120. 
A) $15. 
B) $135. 
C) $40. 
D) $95. 
E) $120.

Question 12

-In the figure above,the equilibrium market price is $20.The producer surplus equals

Accepted Answer

A) $20. 
B) $1,500. 
C) $3,000. 
D) 150. 
E) $4,500. 
A) $20. 
B) $1,500. 
C) $3,000. 
D) 150. 
E) $4,500.

Question 13

Value and price can be compared by noting that

Accepted Answer

A) they are the same thing. 
B) value is always greater than price. 
C) value is what we must pay,while price is what we are willing to pay. 
D) price is what we must pay,and value is what we are willing to pay. 
E) value is what the seller receives when we buy a good,and price is what we must pay when we buy a good. 
A) they are the same thing. 
B) value is always greater than price. 
C) value is what we must pay,while price is what we are willing to pay. 
D) price is what we must pay,and value is what we are willing to pay. 
E) value is what the seller receives when we buy a good,and price is what we must pay when we buy a good.

Question 14

The producer surplus is found by subtracting the ________ and then adding the difference for all units sold.

Accepted Answer

A) marginal cost from price 
B) price from marginal cost 
C) marginal benefit from total benefit 
D) marginal cost from marginal benefit 
E) deadweight loss from the price 
A) marginal cost from price 
B) price from marginal cost 
C) marginal benefit from total benefit 
D) marginal cost from marginal benefit 
E) deadweight loss from the price

Question 15

When economists refer to "the invisible hand," what do they mean?

Accepted Answer

In his book,Wealth of Nations,Adam Smith

Question 16

The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hotdog consumed.

Accepted Answer

A) equal to 
B) less than 
C) greater than 
D) the inverse of 
E) equal to 5 times 
A) equal to 
B) less than 
C) greater than 
D) the inverse of 
E) equal to 5 times

Question 17

-Suppose a factory can be designed to produce either trucks or cars.The figure above shows the marginal cost and marginal benefit of producing trucks in terms of the forgone cars.
a.What is the marginal benefit of the 25th truck?
b.What is the marginal cost of the 25th truck?
c.Should the 25th truck be produced? Why or why not.
d.What is the marginal benefit of the 75th truck?
e.What is the marginal cost of the 75th truck?
f.Should the 75th truck be produced? Why or why not?
g.What is the allocatively efficient quantity of trucks?

Accepted Answer

a.3 cars
b.1 car
c.This truck should be

Question 18

Subsidies ________ the price paid by the buyer and ________ the price received by the seller.

Accepted Answer

A) increase,increase 
B) increase,decrease 
C) decrease,increase 
D) decrease,decrease 
E) do not change;increase 
A) increase,increase 
B) increase,decrease 
C) decrease,increase 
D) decrease,decrease 
E) do not change;increase

Question 19

If society can produce more of one good but must forgo some of another good to do so,it is definitely achieving

Accepted Answer

A) both production and allocative efficiency. 
B) only production efficiency. 
C) only allocative efficiency. 
D) neither production nor allocative efficiency. 
E) None of the above answers is correct because when society must forgo another good to produce more of one good,then society might be production efficient or it might be allocatively efficient. 
A) both production and allocative efficiency. 
B) only production efficiency. 
C) only allocative efficiency. 
D) neither production nor allocative efficiency. 
E) None of the above answers is correct because when society must forgo another good to produce more of one good,then society might be production efficient or it might be allocatively efficient.

Question 20

When efficiency is attained,the consumer surplus

Accepted Answer

A) must be larger than the producer surplus. 
B) must be smaller than the producer surplus. 
C) must equal the producer surplus. 
D) can be either smaller than or larger than but cannot equal the producer surplus. 
E) can be smaller than,equal to,or larger than the producer surplus. 
A) must be larger than the producer surplus. 
B) must be smaller than the producer surplus. 
C) must equal the producer surplus. 
D) can be either smaller than or larger than but cannot equal the producer surplus. 
E) can be smaller than,equal to,or larger than the producer surplus.

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

When a market is efficient,the

The maximum amount of other goods and services that people are willing to give up in order to get one more unit of a good is defined as the good's

If a seller charges a buyer the exact price the buyer is willing to pay,then the buyer would

What is consumer surplus?

-The figure above represents the competitive market for slices of key lime pie.If the production is 80 slices per day,the cost of the 80th slice is

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the total revenue from pizza per day is

Which of the following is most closely related to the "fair results" approach to fairness?

Mary is willing to pay $50 for a Christmas tree,John is willing to pay $45 and Jeff is willing to pay $40.The price of a tree is $40.The total consumer surplus for Mary,John and Jeff taken together is

-In the figure above,the equilibrium market price is $20.The producer surplus equals

Value and price can be compared by noting that

The producer surplus is found by subtracting the ________ and then adding the difference for all units sold.

When economists refer to "the invisible hand," what do they mean?

The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hotdog consumed.

Subsidies the price paid by the buyer and the price received by the seller.

If society can produce more of one good but must forgo some of another good to do so,it is definitely achieving

When efficiency is attained,the consumer surplus

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

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

When a market is efficient,the

The maximum amount of other goods and services that people are willing to give up in order to get one more unit of a good is defined as the good's

If a seller charges a buyer the exact price the buyer is willing to pay,then the buyer would

What is consumer surplus?

-The figure above represents the competitive market for slices of key lime pie.If the production is 80 slices per day,the cost of the 80th slice is

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the total revenue from pizza per day is

Which of the following is most closely related to the "fair results" approach to fairness?

Mary is willing to pay $50 for a Christmas tree,John is willing to pay $45 and Jeff is willing to pay $40.The price of a tree is $40.The total consumer surplus for Mary,John and Jeff taken together is

-In the figure above,the equilibrium market price is $20.The producer surplus equals

Value and price can be compared by noting that

The producer surplus is found by subtracting the ________ and then adding the difference for all units sold.

When economists refer to "the invisible hand," what do they mean?

The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hotdog consumed.

Subsidies ________ the price paid by the buyer and ________ the price received by the seller.

If society can produce more of one good but must forgo some of another good to do so,it is definitely achieving

When efficiency is attained,the consumer surplus

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

Subsidies the price paid by the buyer and the price received by the seller.