Question 1

The opportunity cost of producing one more unit of a good or service is the

Accepted Answer

A) marginal cost. 
B) marginal benefit. 
C) efficient level of production. 
D) market outcome. 
E) price of the good or service. 
A) marginal cost. 
B) marginal benefit. 
C) efficient level of production. 
D) market outcome. 
E) price of the good or service.

Question 2

-The figure above shows the market for hot dogs.
a.What is the maximum price consumers are willing to pay for the 25th hot dog?
b.What is the efficient quantity?
c.Suppose that the production was limited to 25 hot dogs.In the figure,indicate the amount of the deadweight loss.

Accepted Answer

a.Consumers are willing to pay a maximum

Question 3

The figure above shows the supply curve for pizza and the market price of pizza.
-In the figure above,the cost of producing 10,000 pizzas a 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 4

If the price is greater than the marginal cost of producing a good,the seller has

Accepted Answer

A) no benefit from the sale. 
B) a loss. 
C) some producer surplus from the sale. 
D) some negative consumer surplus from the sale. 
E) None of the above answers is correct. 
A) no benefit from the sale. 
B) a loss. 
C) some producer surplus from the sale. 
D) some negative consumer surplus from the sale. 
E) None of the above answers is correct.

Question 5

The idea that unequal incomes are unfair generally uses the ________ principle of fairness.

Accepted Answer

A) big tradeoff 
B) involuntary exchange 
C) voluntary exchange 
D) it's not fair if the result isn't fair 
E) it's not fair if the rules aren't fair 
A) big tradeoff 
B) involuntary exchange 
C) voluntary exchange 
D) it's not fair if the result isn't fair 
E) it's not fair if the rules aren't fair

Question 6

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 10,000th soda is

Accepted Answer

A) $0.00. 
B) $0.50. 
C) $1.00. 
D) more than $0.50 and less than $1.00. 
E) None of the above answers is correct. 
A) $0.00. 
B) $0.50. 
C) $1.00. 
D) more than $0.50 and less than $1.00. 
E) None of the above answers is correct.

Question 7

The figure above shows the demand curve for pizza and the market price of pizza.
-In the figure above,how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

Accepted Answer

A) $15 
B) $10 
C) $12 
D) $22.50 
E) $5 
A) $15 
B) $10 
C) $12 
D) $22.50 
E) $5

Question 8

If an economy is producing on its PPF,then it is definitely achieving

Accepted Answer

A) both production and allocative efficiency. 
B) only production efficiency,but it definitely is not achieving allocative efficiency. 
C) only allocative efficiency,but it is definitely not achieving production efficiency. 
D) neither production nor allocative efficiency. 
E) only production efficiency. 
A) both production and allocative efficiency. 
B) only production efficiency,but it definitely is not achieving allocative efficiency. 
C) only allocative efficiency,but it is definitely not achieving production efficiency. 
D) neither production nor allocative efficiency. 
E) only production efficiency.

Question 9

Ben's cost of making an additional rocking chair is $75.

Accepted Answer

A) If he sells it for a $100,his producer surplus is $25. 
B) His marginal cost is equal to $75. 
C) The marginal benefit to the consumer from the chair will be $75. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) If he sells it for a $100,his producer surplus is $25. 
B) His marginal cost is equal to $75. 
C) The marginal benefit to the consumer from the chair will be $75. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 10

The resource allocation method used for the online auctions on eBay is

Accepted Answer

A) market price. 
B) lottery. 
C) contest. 
D) first-come,first-served. 
E) sharing equally. 
A) market price. 
B) lottery. 
C) contest. 
D) first-come,first-served. 
E) sharing equally.

Question 11

For resource use to be allocatively efficient,when the marginal benefit of a slice of pizza exceeds the marginal cost,

Accepted Answer

A) more slices of pizza should be produced. 
B) fewer slices of pizza should be produced. 
C) no more slices of pizza should be produced. 
D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible. 
E) None of the above answers is correct. 
A) more slices of pizza should be produced. 
B) fewer slices of pizza should be produced. 
C) no more slices of pizza should be produced. 
D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible. 
E) None of the above answers is correct.

Question 12

-The figure above shows the market for pants.If 6 million pairs of pants are produced,the deadweight loss is

Accepted Answer

A) zero. 
B) the triangle ABE. 
C) the triangle BCE. 
D) the triangle ACE. 
E) the triangle BCE minus the triangle ABE. 
A) zero. 
B) the triangle ABE. 
C) the triangle BCE. 
D) the triangle ACE. 
E) the triangle BCE minus the triangle ABE.

Question 13

Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing

Accepted Answer

A) too few computers to be allocatively efficient. 
B) too many computers to be allocatively efficient. 
C) the correct number of computers to be allocatively efficient. 
D) at the point of allocative efficiency. 
E) More information is needed to determine if the nation is or is not producing at the allocatively efficient point. 
A) too few computers to be allocatively efficient. 
B) too many computers to be allocatively efficient. 
C) the correct number of computers to be allocatively efficient. 
D) at the point of allocative efficiency. 
E) More information is needed to determine if the nation is or is not producing at the allocatively efficient point.

Question 14

Consumer surplus exists when

Accepted Answer

A) it costs less to produce goods than buyers must pay for them. 
B) consumers value the good more highly than what they must pay to buy it. 
C) taxes on goods are less than the appropriate amount. 
D) the marginal benefit of the good is always equal to or less than the price of the good. 
E) the price of the good is greater than the marginal cost of producing a unit of the good. 
A) it costs less to produce goods than buyers must pay for them. 
B) consumers value the good more highly than what they must pay to buy it. 
C) taxes on goods are less than the appropriate amount. 
D) the marginal benefit of the good is always equal to or less than the price of the good. 
E) the price of the good is greater than the marginal cost of producing a unit of the good.

Question 15

Marginal benefit

Accepted Answer

A) increases as more of a good is consumed. 
B) decreases as more of a good is consumed. 
C) is the total benefit from all units consumed. 
D) is constant as more of a good is consumed. 
E) is the gain to the producer of producing and selling one more unit of a good. 
A) increases as more of a good is consumed. 
B) decreases as more of a good is consumed. 
C) is the total benefit from all units consumed. 
D) is constant as more of a good is consumed. 
E) is the gain to the producer of producing and selling one more unit of a good.

Question 16

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.Katy's consumer surplus equaled

Accepted Answer

A) $10. 
B) $40. 
C) $5. 
D) $20. 
E) $50. 
A) $10. 
B) $40. 
C) $5. 
D) $20. 
E) $50.

Question 17

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

Accepted Answer

A) $120. 
B) $90. 
C) $60. 
D) $0. 
E) None of the above answers is correct. 
A) $120. 
B) $90. 
C) $60. 
D) $0. 
E) None of the above answers is correct.

Question 18

If an economy is allocatively efficient,it must be producing

Accepted Answer

A) beyond its production possibilities frontier. 
B) inside its production possibilities frontier. 
C) on its production possibilities frontier. 
D) the goods and services that are the most expensive. 
E) the goods and services that are the least expensive to produce. 
A) beyond its production possibilities frontier. 
B) inside its production possibilities frontier. 
C) on its production possibilities frontier. 
D) the goods and services that are the most expensive. 
E) the goods and services that are the least expensive to produce.

Question 19

Which describes the economic meanings of value and price?

Accepted Answer

A) Value is exchange worth minus marginal benefit,and price is the dollars that must be paid. 
B) Value is the marginal benefit obtained,and price is the dollars that must be paid. 
C) Value refers to the gain the producer gets from the good or service,and price refers to the gain the consumer gets from the good or service. 
D) Value refers to the dollars that must be paid,and price refers to the cost of producing the good. 
E) They are the same and both mean the dollars that must be paid. 
A) Value is exchange worth minus marginal benefit,and price is the dollars that must be paid. 
B) Value is the marginal benefit obtained,and price is the dollars that must be paid. 
C) Value refers to the gain the producer gets from the good or service,and price refers to the gain the consumer gets from the good or service. 
D) Value refers to the dollars that must be paid,and price refers to the cost of producing the good. 
E) They are the same and both mean the dollars that must be paid.

Question 20

At a competitive equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,

Accepted Answer

A) the marginal benefit is greater than the marginal cost. 
B) resource use is efficient. 
C) the marginal benefit is less than the marginal cost. 
D) both the marginal benefit and the marginal cost of the last unit produced equal zero. 
E) the marginal benefit is greater than the marginal cost by as much as possible. 
A) the marginal benefit is greater than the marginal cost. 
B) resource use is efficient. 
C) the marginal benefit is less than the marginal cost. 
D) both the marginal benefit and the marginal cost of the last unit produced equal zero. 
E) the marginal benefit is greater than the marginal cost by as much as possible.

The opportunity cost of producing one more unit of a good or service is the

-The figure above shows the market for hot dogs. a.What is the maximum price consumers are willing to pay for the 25th hot dog? b.What is the efficient quantity? c.Suppose that the production was limited to 25 hot dogs.In the figure,indicate the amount of the deadweight loss.

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the cost of producing 10,000 pizzas a day is

If the price is greater than the marginal cost of producing a good,the seller has

The idea that unequal incomes are unfair generally uses the ________ principle of fairness.

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 10,000th soda is

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above,how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

If an economy is producing on its PPF,then it is definitely achieving

Ben's cost of making an additional rocking chair is $75.

The resource allocation method used for the online auctions on eBay is

For resource use to be allocatively efficient,when the marginal benefit of a slice of pizza exceeds the marginal cost,

-The figure above shows the market for pants.If 6 million pairs of pants are produced,the deadweight loss is

Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing

Consumer surplus exists when

Marginal benefit

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.Katy's consumer surplus equaled

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

If an economy is allocatively efficient,it must be producing

Which describes the economic meanings of value and price?

At a competitive equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,

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

The opportunity cost of producing one more unit of a good or service is the

-The figure above shows the market for hot dogs. a.What is the maximum price consumers are willing to pay for the 25th hot dog? b.What is the efficient quantity? c.Suppose that the production was limited to 25 hot dogs.In the figure,indicate the amount of the deadweight loss.

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the cost of producing 10,000 pizzas a day is

If the price is greater than the marginal cost of producing a good,the seller has

The idea that unequal incomes are unfair generally uses the ________ principle of fairness.

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The marginal cost of the 10,000th soda is

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above,how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

If an economy is producing on its PPF,then it is definitely achieving

Ben's cost of making an additional rocking chair is $75.

The resource allocation method used for the online auctions on eBay is

For resource use to be allocatively efficient,when the marginal benefit of a slice of pizza exceeds the marginal cost,

-The figure above shows the market for pants.If 6 million pairs of pants are produced,the deadweight loss is

Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing

Consumer surplus exists when

Marginal benefit

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.Katy's consumer surplus equaled

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

If an economy is allocatively efficient,it must be producing

Which describes the economic meanings of value and price?

At a competitive equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,

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