Question 1

We allocate resources efficiently when

Accepted Answer

A) marginal benefit is equal to marginal cost. 
B) marginal benefit is greater than marginal cost by any amount. 
C) marginal cost is greater than marginal benefit. 
D) total benefit is greater than total cost. 
E) marginal benefit is greater than marginal cost by as much as possible. 
A) marginal benefit is equal to marginal cost. 
B) marginal benefit is greater than marginal cost by any amount. 
C) marginal cost is greater than marginal benefit. 
D) total benefit is greater than total cost. 
E) marginal benefit is greater than marginal cost by as much as possible.

Question 2

-In the figure above,for the 3,000th unit,the maximum price a consumer is willing to pay is

Accepted Answer

A) $5. 
B) $10. 
C) $15. 
D) $0. 
E) $25. 
A) $5. 
B) $10. 
C) $15. 
D) $0. 
E) $25.

Question 3

-Bill and Krista sell potted plants from a roadside stand.The figure above shows Bill and Krista's marginal cost curve and the market price.If Bill and Krista sell 60 plants per week at $8 per plant,their producer surplus from all their plants is

Accepted Answer

A) $8. 
B) $480. 
C) $240. 
D) $0. 
E) More information is needed to answer the question. 
A) $8. 
B) $480. 
C) $240. 
D) $0. 
E) More information is needed to answer the question.

Question 4

The demand curve is also the

Accepted Answer

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

Question 5

Which of the following can result in a market producing an inefficient quantity of a good?
I.competition
Ii.an external cost or an external benefit
Iii.a tax

Accepted Answer

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

Question 6

What are the two views of fairness? How does each view redistribution of income from the rich to the poor?

Accepted Answer

One view is that "it's not fair if the r

Question 7

A competitive market with no externalities is efficient when it is in equilibrium because

Accepted Answer

A) total benefit equals total cost. 
B) marginal benefit equals marginal cost. 
C) consumer surplus equals producer surplus. 
D) the sum of consumer surplus plus producer surplus is minimized. 
E) the deadweight gain equals its maximum. 
A) total benefit equals total cost. 
B) marginal benefit equals marginal cost. 
C) consumer surplus equals producer surplus. 
D) the sum of consumer surplus plus producer surplus is minimized. 
E) the deadweight gain equals its maximum.

Question 8

If a firm produces five chairs with marginal costs of $25,$30,$40,$55,and $75,respectively,and sells them for $80 each,what is the firm's total producer surplus?

Accepted Answer

A) $400 
B) $225 
C) $175 
D) $150 
E) $80 
A) $400 
B) $225 
C) $175 
D) $150 
E) $80

Question 9

A supply curve shows quantities supplied at various prices.It also shows the

Accepted Answer

A) total profit the firm earns at a given level of output. 
B) marginal benefit of the good. 
C) total cost of production. 
D) marginal cost of production. 
E) producer surplus,which is equal to the slope of the supply curve. 
A) total profit the firm earns at a given level of output. 
B) marginal benefit of the good. 
C) total cost of production. 
D) marginal cost of production. 
E) producer surplus,which is equal to the slope of the supply curve.

Question 10

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using 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 11

"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer.

Accepted Answer

The statement is incorrect.A demand curv

Question 12

-In the above figure,what is the marginal cost of the 4th pizza?

Accepted Answer

A) $0 
B) $4 
C) $9 
D) $36 
E) 4 pizzas 
A) $0 
B) $4 
C) $9 
D) $36 
E) 4 pizzas

Question 13

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.At 1 manatee swim per week,Kaley's marginal benefit is ________ and Scott's marginal cost is ________.

Accepted Answer

A) $40;$10 
B) $40;$40 
C) $90;$50 
D) None of the above answers is correct. 
A) $40;$10 
B) $40;$40 
C) $90;$50 
D) None of the above answers is correct.

Question 14

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza.
-In the figure above,production efficiency occurs at ________,and allocative efficiency occurs at ________.

Accepted Answer

A) all points on the PPF;only one point on the PPF 
B) only one point on the PPF;all points on the PPF 
C) only one point on the PPF;only one point on the PPF 
D) all points on the PPF;all points on the PPF 
E) all points on the PPF;all points above the PPF 
A) all points on the PPF;only one point on the PPF 
B) only one point on the PPF;all points on the PPF 
C) only one point on the PPF;only one point on the PPF 
D) all points on the PPF;all points on the PPF 
E) all points on the PPF;all points above the PPF

Question 15

Which of the following is true?
I.Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service.
Ii.Producer surplus equals marginal benefit minus price,summed over the quantity produced.
Iii.A supply curve is a marginal cost curve.

Accepted Answer

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

Question 16

Which of the following is true for taxes? They

Accepted Answer

A) are always administered fairly. 
B) are a necessary part of living in an economy with a fair distribution of income. 
C) are always administered without creating unfairness or inefficiency. 
D) are an involuntary transfer of private property. 
E) do not create a big tradeoff problem. 
A) are always administered fairly. 
B) are a necessary part of living in an economy with a fair distribution of income. 
C) are always administered without creating unfairness or inefficiency. 
D) are an involuntary transfer of private property. 
E) do not create a big tradeoff problem.

Question 17

As pointed out by the "big tradeoff," government action that redistributes incomes so that everyone has the same income leads to

Accepted Answer

A) fairness according to the "fair rules" approach. 
B) efficient markets. 
C) resources being allocated according to a command system. 
D) a smaller total output. 
E) lower taxes on the rich than on the poor so that the rich do not lose their incentive to work. 
A) fairness according to the "fair rules" approach. 
B) efficient markets. 
C) resources being allocated according to a command system. 
D) a smaller total output. 
E) lower taxes on the rich than on the poor so that the rich do not lose their incentive to work.

Question 18

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

Accepted Answer

A) $0.00. 
B) $0.50. 
C) $1.00. 
D) $1.50. 
E) $2.50. 
A) $0.00. 
B) $0.50. 
C) $1.00. 
D) $1.50. 
E) $2.50.

Question 19

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) Either point A or point D 
A) A 
B) B 
C) C 
D) D 
E) Either point A or point D

Question 20

-In the above figure,what is the marginal cost of the 8th pizza?

Accepted Answer

A) $1.50 
B) $12 
C) $6 
D) $96 
E) 8 pizzas 
A) $1.50 
B) $12 
C) $6 
D) $96 
E) 8 pizzas

We allocate resources efficiently when

-In the figure above,for the 3,000th unit,the maximum price a consumer is willing to pay is

-Bill and Krista sell potted plants from a roadside stand.The figure above shows Bill and Krista's marginal cost curve and the market price.If Bill and Krista sell 60 plants per week at $8 per plant,their producer surplus from all their plants is

The demand curve is also the

Which of the following can result in a market producing an inefficient quantity of a good? I.competition Ii.an external cost or an external benefit Iii.a tax

What are the two views of fairness? How does each view redistribution of income from the rich to the poor?

A competitive market with no externalities is efficient when it is in equilibrium because

If a firm produces five chairs with marginal costs of $25,$30,$40,$55,and $75,respectively,and sells them for $80 each,what is the firm's total producer surplus?

A supply curve shows quantities supplied at various prices.It also shows the

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer.

-In the above figure,what is the marginal cost of the 4th pizza?

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.At 1 manatee swim per week,Kaley's marginal benefit is and Scott's marginal cost is .

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,production efficiency occurs at ,and allocative efficiency occurs at .

Which of the following is true? I.Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service. Ii.Producer surplus equals marginal benefit minus price,summed over the quantity produced. Iii.A supply curve is a marginal cost curve.

Which of the following is true for taxes? They

As pointed out by the "big tradeoff," government action that redistributes incomes so that everyone has the same income leads to

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

-In the above figure,what is the marginal cost of the 8th pizza?

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

We allocate resources efficiently when

-In the figure above,for the 3,000th unit,the maximum price a consumer is willing to pay is

-Bill and Krista sell potted plants from a roadside stand.The figure above shows Bill and Krista's marginal cost curve and the market price.If Bill and Krista sell 60 plants per week at $8 per plant,their producer surplus from all their plants is

The demand curve is also the

Which of the following can result in a market producing an inefficient quantity of a good? I.competition Ii.an external cost or an external benefit Iii.a tax

What are the two views of fairness? How does each view redistribution of income from the rich to the poor?

A competitive market with no externalities is efficient when it is in equilibrium because

If a firm produces five chairs with marginal costs of $25,$30,$40,$55,and $75,respectively,and sells them for $80 each,what is the firm's total producer surplus?

A supply curve shows quantities supplied at various prices.It also shows the

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer.

-In the above figure,what is the marginal cost of the 4th pizza?

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.At 1 manatee swim per week,Kaley's marginal benefit is ________ and Scott's marginal cost is ________.

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,production efficiency occurs at ________,and allocative efficiency occurs at ________.

Which of the following is true? I.Marginal cost is measured by the maximum price that consumers are willing to pay for another unit of a good or service. Ii.Producer surplus equals marginal benefit minus price,summed over the quantity produced. Iii.A supply curve is a marginal cost curve.

Which of the following is true for taxes? They

As pointed out by the "big tradeoff," government action that redistributes incomes so that everyone has the same income leads to

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's consumer surplus from her 10th soda is

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

-In the above figure,what is the marginal cost of the 8th pizza?

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

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.At 1 manatee swim per week,Kaley's marginal benefit is and Scott's marginal cost is .

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,production efficiency occurs at ,and allocative efficiency occurs at .