Exam 6: Efficiency and Fairness of Markets

-In the figure above,if the market is at equilibrium,then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________.

The marginal benefit of a taco is measured by

The chair of the Department of Economics at Colorado State University decided that office space is for tenured faculty and that graduate students are required to share cubicles.What method is used to allocate office space?

Efficiency in a market occurs when the production of the good is such that

The figure above shows the market for pizza. -In the figure above,if pizza production increases to 15,000 pizzas a day,then marginal benefit ________ marginal cost,and ________ occurs.

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,when 2,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

Why does the marginal benefit curve have a negative slope?

Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.Which method of allocation best describes the choice to purchase the sets?

The marginal cost curves slope upward because of the principle of

The value of a slice of pizza to a consumer is equal to

When marginal benefit exceeds marginal cost in a market,

If one producer has control over an entire market and underproduces,the producer will

Assume the Nozick rules are being followed in the economy so that the distribution of income is fair.What must be true for this to create an efficient allocation of resources?

If the market for bicycles is efficient,then

Bill Gates is a founder of Microsoft and the world's richest individual.Suppose Microsoft sells more software and Mr.Gates acquires another billion dollars in wealth.Simultaneously,suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars' worth of antiques.Using the "it's not fair if the rules aren't fair" approach to fairness,is Mr.Gates' acquisition of additional wealth fair? Is the (poor)thief's acquisition fair?

When production moves from the efficient quantity to a point of overproduction,

Graphically,producer surplus is the area under the

When the price of a product exceeds the marginal cost of producing it,producers have a

Which of the following are the rules for finding the point of allocative efficiency?

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The producer surplus from the 20,000th soda is