Question 1

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

Accepted Answer

A) 0 pizzas 
B) 10,000 pizzas 
C) 20,000 pizzas 
D) 30,000 pizzas 
E) The efficient quantity cannot be determine without more information. 
A) 0 pizzas 
B) 10,000 pizzas 
C) 20,000 pizzas 
D) 30,000 pizzas 
E) The efficient quantity cannot be determine without more information.

Question 2

Producer surplus is the ________ summed over the quantity produced.

Accepted Answer

A) price of the good minus the marginal cost of producing it 
B) marginal benefit of the good minus its marginal cost 
C) marginal benefit of the good minus its price 
D) marginal cost of the good minus the opportunity cost of producing it 
E) None of the above answers is correct. 
A) price of the good minus the marginal cost of producing it 
B) marginal benefit of the good minus its marginal cost 
C) marginal benefit of the good minus its price 
D) marginal cost of the good minus the opportunity cost of producing it 
E) None of the above answers is correct.

Question 3

A good or service can be consumed by a person even if he or she didn't pay for it is called ________ good.

Accepted Answer

A) a private 
B) a public 
C) a normal 
D) an inferior 
E) an external 
A) a private 
B) a public 
C) a normal 
D) an inferior 
E) an external

Question 4

Suppose you're willing to tutor a student for $10 an hour.The student pays you $15 an hour.What is your producer surplus?

Accepted Answer

A) $5 an hour 
B) $10 an hour 
C) $15 an hour 
D) $25 an hour 
E) More than $25 an hour 
A) $5 an hour 
B) $10 an hour 
C) $15 an hour 
D) $25 an hour 
E) More than $25 an hour

Question 5

-In the figure above,the equilibrium market price is $20.$20 is the

Accepted Answer

A) marginal cost of the 150th unit. 
B) willingness to pay for the 1st unit. 
C) producer surplus. 
D) consumer surplus. 
E) deadweight loss. 
A) marginal cost of the 150th unit. 
B) willingness to pay for the 1st unit. 
C) producer surplus. 
D) consumer surplus. 
E) deadweight loss.

Question 6

Suppose the price of a scooter is $200 and Cora Lee is willing to pay $250.Cora Lee's

Accepted Answer

A) consumer surplus from that scooter is $200. 
B) consumer surplus from that scooter is $50. 
C) marginal benefit from that scooter is $100. 
D) consumer surplus from that scooter is $150. 
E) consumer surplus from that scooter is $250. 
A) consumer surplus from that scooter is $200. 
B) consumer surplus from that scooter is $50. 
C) marginal benefit from that scooter is $100. 
D) consumer surplus from that scooter is $150. 
E) consumer surplus from that scooter is $250.

Question 7

The supply curve of a good or service is the same as

Accepted Answer

A) the demand curve. 
B) the marginal benefit curve. 
C) the marginal cost curve. 
D) the total surplus curve. 
E) None of the above answers is correct. 
A) the demand curve. 
B) the marginal benefit curve. 
C) the marginal cost curve. 
D) the total surplus curve. 
E) None of the above answers is correct.

Question 8

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ________,and the method of allocation for determining the winner of the race is ________.

Accepted Answer

A) lottery;contest 
B) contest;lottery 
C) first-come,first-served;lottery 
D) lottery;first-come,first-served 
E) contest;command 
A) lottery;contest 
B) contest;lottery 
C) first-come,first-served;lottery 
D) lottery;first-come,first-served 
E) contest;command

Question 9

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Accepted Answer

A) command 
B) majority rule 
C) force 
D) personal characteristics 
E) lottery 
A) command 
B) majority rule 
C) force 
D) personal characteristics 
E) lottery

Question 10

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Accepted Answer

A) producer surplus. 
B) equilibrium. 
C) marginal cost. 
D) total surplus. 
E) consumer surplus. 
A) producer surplus. 
B) equilibrium. 
C) marginal cost. 
D) total surplus. 
E) consumer surplus.

Question 11

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

Accepted Answer

A) $5,500. 
B) $3,000. 
C) $2,500. 
D) $500. 
E) zero because he buys the piano. 
A) $5,500. 
B) $3,000. 
C) $2,500. 
D) $500. 
E) zero because he buys the piano.

Question 12

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.

Accepted Answer

A) majority rule 
B) market price 
C) contest 
D) personal characteristics 
E) command 
A) majority rule 
B) market price 
C) contest 
D) personal characteristics 
E) command

Question 13

Air pollution is an external cost because it

Accepted Answer

A) is a pollution of the external environment. 
B) is a cost not borne by the producer of the good. 
C) benefits no one. 
D) is not associated with resource use. 
E) is created only when production occurs. 
A) is a pollution of the external environment. 
B) is a cost not borne by the producer of the good. 
C) benefits no one. 
D) is not associated with resource use. 
E) is created only when production occurs.

Question 14

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The producer surplus from the 10,000th soda is

Accepted Answer

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

Question 15

A supply curve shows the ________ of producing one more unit of a good or service.

Accepted Answer

A) producer surplus 
B) consumer surplus 
C) total benefit 
D) marginal cost 
E) marginal benefit to the producer 
A) producer surplus 
B) consumer surplus 
C) total benefit 
D) marginal cost 
E) marginal benefit to the producer

Question 16

-In the figure above,suppose that $20 is the market equilibrium price.What is the amount of the consumer surplus?

Accepted Answer

A) $3,375 
B) $3,000 
C) $375 
D) 150 units 
E) $1,500 
A) $3,375 
B) $3,000 
C) $375 
D) 150 units 
E) $1,500

Question 17

In general,as the consumption of a good or service increases,the marginal benefit from consuming that good or service

Accepted Answer

A) increases. 
B) decreases. 
C) stays the same. 
D) at first increases and then decreases. 
E) at first decreases and then increases. 
A) increases. 
B) decreases. 
C) stays the same. 
D) at first increases and then decreases. 
E) at first decreases and then increases.

Question 18

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?

Accepted Answer

A) lottery 
B) first-come,first-served 
C) command 
D) contest 
E) sharing equally 
A) lottery 
B) first-come,first-served 
C) command 
D) contest 
E) sharing equally

Question 19

In a competitive market for a private good with no price or quantity regulations,no external cost nor external benefit,low transactions costs,and no taxes or subsidies,

Accepted Answer

A) the allocation of resources is planned by the government. 
B) production is organized by government organizations. 
C) efficiency can be attained in the market with no government intervention. 
D) efficiency is usually be achieved by majority rule. 
E) efficiency is generally obtained by using a command system. 
A) the allocation of resources is planned by the government. 
B) production is organized by government organizations. 
C) efficiency can be attained in the market with no government intervention. 
D) efficiency is usually be achieved by majority rule. 
E) efficiency is generally obtained by using a command system.

Question 20

Explain the difference between the words "value," "price," and "cost."

Accepted Answer

Value refers to the marginal benefit of

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

Producer surplus is the ________ summed over the quantity produced.

A good or service can be consumed by a person even if he or she didn't pay for it is called ________ good.

Suppose you're willing to tutor a student for $10 an hour.The student pays you $15 an hour.What is your producer surplus?

-In the figure above,the equilibrium market price is $20.$20 is the

Suppose the price of a scooter is $200 and Cora Lee is willing to pay $250.Cora Lee's

The supply curve of a good or service is the same as

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ,and the method of allocation for determining the winner of the race is .

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.

Air pollution is an external cost because it

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The producer surplus from the 10,000th soda is

A supply curve shows the ________ of producing one more unit of a good or service.

-In the figure above,suppose that $20 is the market equilibrium price.What is the amount of the consumer surplus?

In general,as the consumption of a good or service increases,the marginal benefit from consuming that good or service

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?

In a competitive market for a private good with no price or quantity regulations,no external cost nor external benefit,low transactions costs,and no taxes or subsidies,

Explain the difference between the words "value," "price," and "cost."

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 figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

Producer surplus is the ________ summed over the quantity produced.

A good or service can be consumed by a person even if he or she didn't pay for it is called ________ good.

Suppose you're willing to tutor a student for $10 an hour.The student pays you $15 an hour.What is your producer surplus?

-In the figure above,the equilibrium market price is $20.$20 is the

Suppose the price of a scooter is $200 and Cora Lee is willing to pay $250.Cora Lee's

The supply curve of a good or service is the same as

The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ________,and the method of allocation for determining the winner of the race is ________.

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.

Air pollution is an external cost because it

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The producer surplus from the 10,000th soda is

A supply curve shows the ________ of producing one more unit of a good or service.

-In the figure above,suppose that $20 is the market equilibrium price.What is the amount of the consumer surplus?

In general,as the consumption of a good or service increases,the marginal benefit from consuming that good or service

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?

In a competitive market for a private good with no price or quantity regulations,no external cost nor external benefit,low transactions costs,and no taxes or subsidies,

Explain the difference between the words "value," "price," and "cost."

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 Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race.The method of allocation for the opportunity to participate in the race is ,and the method of allocation for determining the winner of the race is .