Question 1

The figure above shows the market for pizza.
-In the figure above,if pizza production increases to 15,000 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 2

When the marginal cost of producing a bike is greater than the marginal benefit of the bike,for resource use to be allocatively efficient,

Accepted Answer

A) more bikes should be produced. 
B) fewer bikes should be produced. 
C) no more and no fewer bikes should be produced. 
D) it must be determined if the production of bikes can be increased. 
E) people must be educated to demand more bikes. 
A) more bikes should be produced. 
B) fewer bikes should be produced. 
C) no more and no fewer bikes should be produced. 
D) it must be determined if the production of bikes can be increased. 
E) people must be educated to demand more bikes.

Question 3

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

Accepted Answer

A) area C. 
B) area D + area I. 
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 C. 
B) area D + area I. 
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 4

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

Accepted Answer

A) a tax. 
B) a subsidy. 
C) a quantity regulation. 
D) a price regulation. 
E) an externality. 
A) a tax. 
B) a subsidy. 
C) a quantity regulation. 
D) a price regulation. 
E) an externality.

Question 5

If you split your dessert with your date,you are using a ________ allocation method.

Accepted Answer

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

Question 6

To achieve allocative efficiency,one must compare the

Accepted Answer

A) marginal cost of a good to its opportunity cost. 
B) opportunity cost to the attainable point on the production possibilities frontier. 
C) marginal benefit of a good to its marginal cost. 
D) marginal cost to the production efficiency cost. 
E) point of production efficiency to the point of allocative efficiency. 
A) marginal cost of a good to its opportunity cost. 
B) opportunity cost to the attainable point on the production possibilities frontier. 
C) marginal benefit of a good to its marginal cost. 
D) marginal cost to the production efficiency cost. 
E) point of production efficiency to the point of allocative efficiency.

Question 7

In order to efficiently allocate goods and services,we have to compare

Accepted Answer

A) total cost to total benefit. 
B) total cost to price. 
C) marginal benefit to price. 
D) marginal cost to marginal benefit. 
E) price to marginal cost. 
A) total cost to total benefit. 
B) total cost to price. 
C) marginal benefit to price. 
D) marginal cost to marginal benefit. 
E) price to marginal cost.

Question 8

Marginal benefit is the

Accepted Answer

A) total benefit we receive from consuming a good or service. 
B) additional benefit we receive from consuming one more unit of a good or service. 
C) minimum amount of other goods or services we are willing to give up. 
D) opportunities given up to get one more unit of a good or service. 
E) the benefit we receive from consuming one more unit of a good or service minus the cost of the producing one more unit of the good or service. 
A) total benefit we receive from consuming a good or service. 
B) additional benefit we receive from consuming one more unit of a good or service. 
C) minimum amount of other goods or services we are willing to give up. 
D) opportunities given up to get one more unit of a good or service. 
E) the benefit we receive from consuming one more unit of a good or service minus the cost of the producing one more unit of the good or service.

Question 9

As more of a good is consumed,marginal benefit ________ and as more of a good is produced,marginal cost ________.

Accepted Answer

A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) does not change;does not change 
A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) does not change;does not change

Question 10

The figure above shows the demand curve for pizza and the market price of pizza.
-In the figure above,how much do the consumers pay in total for the quantity of pizza they buy per day?

Accepted Answer

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

Question 11

What is the "invisible hand"?

Accepted Answer

The invisible hand is a concept articula

Question 12

Moving ________ along the marginal cost curve,the ________.

Accepted Answer

A) upward;opportunity cost of one more unit increases 
B) upward;marginal cost decreases 
C) downward;marginal cost increases 
D) upward;opportunity cost of one more unit does not change 
E) downward;opportunity cost of one more unit does not change 
A) upward;opportunity cost of one more unit increases 
B) upward;marginal cost decreases 
C) downward;marginal cost increases 
D) upward;opportunity cost of one more unit does not change 
E) downward;opportunity cost of one more unit does not change

Question 13

-In the above figure,the market is at its equilibrium.Area B is equal to

Accepted Answer

A) consumer surplus. 
B) total revenue. 
C) marginal benefit. 
D) producer surplus. 
E) total surplus. 
A) consumer surplus. 
B) total revenue. 
C) marginal benefit. 
D) producer surplus. 
E) total surplus.

Question 14

Consumer surplus is equal to

Accepted Answer

A) marginal benefit minus price summed over the quantity consumed. 
B) price minus marginal benefit summed over the quantity consumed. 
C) marginal benefit summed over the quantity consumed. 
D) price multiplied by the quantity consumed. 
E) marginal benefit plus price summed over the quantity consumed. 
A) marginal benefit minus price summed over the quantity consumed. 
B) price minus marginal benefit summed over the quantity consumed. 
C) marginal benefit summed over the quantity consumed. 
D) price multiplied by the quantity consumed. 
E) marginal benefit plus price summed over the quantity consumed.

Question 15

The "equality of opportunity" idea of fairness claims

Accepted Answer

A) a society should make the poorest as well off as possible. 
B) the results and the rules should both be fair. 
C) it's not fair if the rules aren't fair. 
D) private property can be transferred under government order. 
E) only a first-come,first-served system of allocating resources is fair. 
A) a society should make the poorest as well off as possible. 
B) the results and the rules should both be fair. 
C) it's not fair if the rules aren't fair. 
D) private property can be transferred under government order. 
E) only a first-come,first-served system of allocating resources is fair.

Question 16

Which of the following occurs when a market is efficient?

Accepted Answer

A) Producers earn the highest income possible. 
B) Production costs equal total benefit. 
C) Consumer surplus equals producer surplus. 
D) Scarce resources are used to produce the goods and services that people value most highly. 
E) Every consumer has all of the good or service he or she wants. 
A) Producers earn the highest income possible. 
B) Production costs equal total benefit. 
C) Consumer surplus equals producer surplus. 
D) Scarce resources are used to produce the goods and services that people value most highly. 
E) Every consumer has all of the good or service he or she wants.

Question 17

The price of a shirt is $20.Charlie can produce a shirt at a marginal cost of $10,Mac can produce a shirt for $18,and Dennis can produce a shirt for $22.For a shirt,Deandra has a marginal benefit of $25,Frank has marginal benefit of $20,and Artemis has a marginal benefit of $18.Which of the following statements is correct?

Accepted Answer

A) The sum of consumer surplus is $5 and the sum of producer surplus is $12. 
B) The sum of consumer surplus is $12. 
C) Only Frank and Artemis will purchase a shirt. 
D) Only Dennis will produce a shirt. 
E) The sum of producer surplus is $10. 
A) The sum of consumer surplus is $5 and the sum of producer surplus is $12. 
B) The sum of consumer surplus is $12. 
C) Only Frank and Artemis will purchase a shirt. 
D) Only Dennis will produce a shirt. 
E) The sum of producer surplus is $10.

Question 18

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

Accepted Answer

A) if you buy it,you would be cheated because you would realize no total benefit from the purchase. 
B) you buy it but you get no marginal benefit from the purchase. 
C) you will not buy it. 
D) you buy it but you get no consumer surplus from the purchase. 
E) you might buy it depending on how the slice's marginal benefit compares to its price. 
A) if you buy it,you would be cheated because you would realize no total benefit from the purchase. 
B) you buy it but you get no marginal benefit from the purchase. 
C) you will not buy it. 
D) you buy it but you get no consumer surplus from the purchase. 
E) you might buy it depending on how the slice's marginal benefit compares to its price.

Question 19

Consumers' total benefit from consuming a good is equal to the

Accepted Answer

A) total amount spent on the good. 
B) consumer surplus on the quantity purchased. 
C) consumer surplus plus the total amount spent on the good. 
D) consumer surplus minus the total amount spent on the good. 
E) total amount spent on the good divided by the number of units purchased. 
A) total amount spent on the good. 
B) consumer surplus on the quantity purchased. 
C) consumer surplus plus the total amount spent on the good. 
D) consumer surplus minus the total amount spent on the good. 
E) total amount spent on the good divided by the number of units purchased.

Question 20

Briefly describe the concept of the "invisible hand."

Accepted Answer

The invisible hand suggests that a compe

The figure above shows the market for pizza. -In the figure above,if pizza production increases to 15,000 pizzas a day,the deadweight loss is

When the marginal cost of producing a bike is greater than the marginal benefit of the bike,for resource use to be allocatively efficient,

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

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

If you split your dessert with your date,you are using a ________ allocation method.

To achieve allocative efficiency,one must compare the

In order to efficiently allocate goods and services,we have to compare

Marginal benefit is the

As more of a good is consumed,marginal benefit and as more of a good is produced,marginal cost .

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above,how much do the consumers pay in total for the quantity of pizza they buy per day?

What is the "invisible hand"?

Moving along the marginal cost curve,the .

-In the above figure,the market is at its equilibrium.Area B is equal to

Consumer surplus is equal to

The "equality of opportunity" idea of fairness claims

Which of the following occurs when a market is efficient?

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

Consumers' total benefit from consuming a good is equal to the

Briefly describe the concept of the "invisible hand."

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 market for pizza. -In the figure above,if pizza production increases to 15,000 pizzas a day,the deadweight loss is

When the marginal cost of producing a bike is greater than the marginal benefit of the bike,for resource use to be allocatively efficient,

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

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

If you split your dessert with your date,you are using a ________ allocation method.

To achieve allocative efficiency,one must compare the

In order to efficiently allocate goods and services,we have to compare

Marginal benefit is the

As more of a good is consumed,marginal benefit ________ and as more of a good is produced,marginal cost ________.

The figure above shows the demand curve for pizza and the market price of pizza. -In the figure above,how much do the consumers pay in total for the quantity of pizza they buy per day?

What is the "invisible hand"?

Moving ________ along the marginal cost curve,the ________.

-In the above figure,the market is at its equilibrium.Area B is equal to

Consumer surplus is equal to

The "equality of opportunity" idea of fairness claims

Which of the following occurs when a market is efficient?

If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4,then

Consumers' total benefit from consuming a good is equal to the

Briefly describe the concept of the "invisible hand."

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

As more of a good is consumed,marginal benefit and as more of a good is produced,marginal cost .

Moving along the marginal cost curve,the .