Question 1

If a landlord will rent an apartment only to married couples,the landlord 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 2

Maria helps tutor students taking economics.The equilibrium price for tutoring is $15 per hour.Maria has determined her opportunity cost per hour to be $6 for the first,$9 for the second,$12 for the third,$15 for the fourth,and $18 for the fifth.How many hours will Maria tutor? Why this amount of hours? What,if any,is Maria's producer surplus?

Accepted Answer

Maria will tutor for 4 hours.For all of

Question 3

Efficiency occurs in a market when

Accepted Answer

A) the sum of consumer surplus and producer surplus is maximized. 
B) consumer surplus is equal to producer surplus. 
C) consumer surplus is less than producer surplus. 
D) consumer surplus is greater than producer surplus. 
E) total revenue is maximized. 
A) the sum of consumer surplus and producer surplus is maximized. 
B) consumer surplus is equal to producer surplus. 
C) consumer surplus is less than producer surplus. 
D) consumer surplus is greater than producer surplus. 
E) total revenue is maximized.

Question 4

A point on the demand curve shows the

Accepted Answer

A) minimum price that people are willing to pay for another unit of a good. 
B) dollars' worth of other goods that people must sacrifice to consume another unit of the good. 
C) maximum price that people are willing to pay for another unit of a good. 
D) consumer surplus a person gains from consuming a unit of a good. 
E) marginal benefit minus the consumer surplus from consuming another unit of a good. 
A) minimum price that people are willing to pay for another unit of a good. 
B) dollars' worth of other goods that people must sacrifice to consume another unit of the good. 
C) maximum price that people are willing to pay for another unit of a good. 
D) consumer surplus a person gains from consuming a unit of a good. 
E) marginal benefit minus the consumer surplus from consuming another unit of a good.

Question 5

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

Accepted Answer

A) $2. 
B) $20. 
C) $10. 
D) $40. 
E) $4. 
A) $2. 
B) $20. 
C) $10. 
D) $40. 
E) $4.

Question 6

-In the above figure,if the quantity is equal to 1,500,000 units,the deadweight is equal to

Accepted Answer

A) area A + area B. 
B) area C. 
C) area B + area F. 
D) area G + area H. 
E) None of the above answers is correct because the deadweight loss is equal to zero. 
A) area A + area B. 
B) area C. 
C) area B + area F. 
D) area G + area H. 
E) None of the above answers is correct because the deadweight loss is equal to zero.

Question 7

All points on the production possibilities frontier

Accepted Answer

A) are production inefficient. 
B) achieve allocative efficiency. 
C) are production efficient but only one point achieves allocative efficiency. 
D) are allocatively efficient but only one point achieves production efficiency. 
E) are allocatively inefficient. 
A) are production inefficient. 
B) achieve allocative efficiency. 
C) are production efficient but only one point achieves allocative efficiency. 
D) are allocatively efficient but only one point achieves production efficiency. 
E) are allocatively inefficient.

Question 8

When you arrive at Olive Garden with your date,you have to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

Accepted Answer

A) market price 
B) first-come,first-served 
C) command 
D) personal characteristics 
E) sharing equally 
A) market price 
B) first-come,first-served 
C) command 
D) personal characteristics 
E) sharing equally

Question 9

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

Accepted Answer

A) $100,000 
B) $50,000 
C) $125,000 
D) $150,000 
E) None of the above answers is correct. 
A) $100,000 
B) $50,000 
C) $125,000 
D) $150,000 
E) None of the above answers is correct.

Question 10

What allocation method is the primary method used in the United States?

Accepted Answer

While all the different allocation metho

Question 11

-The figure above shows the market for brooms.Which of the following could lead to the production of fewer than 600 brooms?

Accepted Answer

A) a monopoly 
B) a deadweight loss 
C) subsidies 
D) an external cost 
E) a big tradeoff 
A) a monopoly 
B) a deadweight loss 
C) subsidies 
D) an external cost 
E) a big tradeoff

Question 12

The figure above shows the market for pizza.
-In the figure above,if pizza production is restricted to 5,000 pizzas a day,the deadweight loss is

Accepted Answer

A) $45,000 per day. 
B) $12,500 per day. 
C) $22,500 per day. 
D) $90,000 per day. 
E) zero. 
A) $45,000 per day. 
B) $12,500 per day. 
C) $22,500 per day. 
D) $90,000 per day. 
E) zero.

Question 13

-In the above figure,if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then the producer surplus is equal to

Accepted Answer

A) area D + area F. 
B) area C + area E. 
C) area A + area B + area C. 
D) area A + area B. 
E) area B + area D + area F. 
A) area D + area F. 
B) area C + area E. 
C) area A + area B + area C. 
D) area A + area B. 
E) area B + area D + area F.

Question 14

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The ________ price that must be offered so that the 10,000th soda is produced is ________.

Accepted Answer

A) minimum;$0.50 
B) minimum;$1.00 
C) maximum;$0.50 
D) maximum;$1.00 
E) minimum;more than $0.50 but less than $1.00 
A) minimum;$0.50 
B) minimum;$1.00 
C) maximum;$0.50 
D) maximum;$1.00 
E) minimum;more than $0.50 but less than $1.00

Question 15

Why do societies face a tradeoff between the size of the economic pie and the degree of equality with which it is shared?

Accepted Answer

A person's share of the economic pie is

Question 16

To an economist,"value" is the same as

Accepted Answer

A) marginal cost. 
B) consumer surplus. 
C) the minimum price that people are willing to pay for another unit of the good. 
D) marginal benefit. 
E) total surplus. 
A) marginal cost. 
B) consumer surplus. 
C) the minimum price that people are willing to pay for another unit of the good. 
D) marginal benefit. 
E) total surplus.

Question 17

Which of the following situations describing a resource allocation method most resembles the market price method?

Accepted Answer

A) Food from the Weld County Food Bank is distributed to families in need. 
B) Lattes are sold at Starbucks. 
C) Jose works at Intel.His manager tells him what work needs to be completed each month. 
D) Matt's mother had the rule that whoever cuts the cake chooses their slice last. 
E) Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets. 
A) Food from the Weld County Food Bank is distributed to families in need. 
B) Lattes are sold at Starbucks. 
C) Jose works at Intel.His manager tells him what work needs to be completed each month. 
D) Matt's mother had the rule that whoever cuts the cake chooses their slice last. 
E) Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.

Question 18

A point on the supply curve can illustrate the

Accepted Answer

A) price and the corresponding quantity supplied. 
B) marginal cost of that unit of the good. 
C) price the consumer is willing to pay. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct. 
A) price and the corresponding quantity supplied. 
B) marginal cost of that unit of the good. 
C) price the consumer is willing to pay. 
D) Both answers A and B are correct. 
E) Both answers A and C are correct.

Question 19

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza.
-In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

Accepted Answer

A) exceeds;too little 
B) exceeds;too much 
C) is below;too much 
D) is below;too little 
E) equals;the efficient quantity of 
A) exceeds;too little 
B) exceeds;too much 
C) is below;too much 
D) is below;too little 
E) equals;the efficient quantity of

Question 20

Allocative efficiency occurs when

Accepted Answer

A) the most highly valued goods and services are produced. 
B) all citizens have equal access to goods and services. 
C) the environment is protected at all cost. 
D) goods and services are free. 
E) production takes place at any point on the PPF. 
A) the most highly valued goods and services are produced. 
B) all citizens have equal access to goods and services. 
C) the environment is protected at all cost. 
D) goods and services are free. 
E) production takes place at any point on the PPF.

If a landlord will rent an apartment only to married couples,the landlord is using a ________ allocation method.

Efficiency occurs in a market when

A point on the demand curve shows the

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

-In the above figure,if the quantity is equal to 1,500,000 units,the deadweight is equal to

All points on the production possibilities frontier

When you arrive at Olive Garden with your date,you have to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

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

What allocation method is the primary method used in the United States?

-The figure above shows the market for brooms.Which of the following could lead to the production of fewer than 600 brooms?

The figure above shows the market for pizza. -In the figure above,if pizza production is restricted to 5,000 pizzas a day,the deadweight loss is

-In the above figure,if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then the producer surplus is equal to

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The price that must be offered so that the 10,000th soda is produced is .

Why do societies face a tradeoff between the size of the economic pie and the degree of equality with which it is shared?

To an economist,"value" is the same as

Which of the following situations describing a resource allocation method most resembles the market price method?

A point on the supply curve can illustrate the

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.

Allocative efficiency occurs when

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

If a landlord will rent an apartment only to married couples,the landlord is using a ________ allocation method.

Efficiency occurs in a market when

A point on the demand curve shows the

Hester owns an ice cream shop.It costs her $2 per cone to make 10 ice cream cones.If she sells 10 cones for $4 each,her producer surplus on the 10 cones is equal to

-In the above figure,if the quantity is equal to 1,500,000 units,the deadweight is equal to

All points on the production possibilities frontier

When you arrive at Olive Garden with your date,you have to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

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

What allocation method is the primary method used in the United States?

-The figure above shows the market for brooms.Which of the following could lead to the production of fewer than 600 brooms?

The figure above shows the market for pizza. -In the figure above,if pizza production is restricted to 5,000 pizzas a day,the deadweight loss is

-In the above figure,if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then the producer surplus is equal to

-The figure above shows the supply curve for soda.The market price is $1.00 per soda.The ________ price that must be offered so that the 10,000th soda is produced is ________.

Why do societies face a tradeoff between the size of the economic pie and the degree of equality with which it is shared?

To an economist,"value" is the same as

Which of the following situations describing a resource allocation method most resembles the market price method?

A point on the supply curve can illustrate the

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

Allocative efficiency occurs when

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 the supply curve for soda.The market price is $1.00 per soda.The price that must be offered so that the 10,000th soda is produced is .

The figure above shows the PPF,marginal cost curve,and marginal benefit curve for pizza. -In the figure above,when 4,000 pizzas are produced,the marginal benefit of a pizza its marginal cost,which means pizza is being produced.