Question 1

A supply curve is the same as a

Accepted Answer

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

Question 2

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents:
a.consumer surplus?
b.producer surplus?

Accepted Answer

The answer of  
-The figure above shows the supply...

Question 3

At the current production point on a nation's production possibilities frontier,the marginal benefit of a slice of pizza is 500 tacos while the marginal cost of producing a slice of pizza is 750 tacos.For the nation to produce at the point of allocative efficiency,what should be done?

Accepted Answer

The marginal benefit of a slic

Question 4

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 5

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

Accepted Answer

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

Question 6

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Accepted Answer

When less than the efficient amount of a

Question 7

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 8

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 9

-In the figure above,the equilibrium market price is $20.The producer surplus equals

Accepted Answer

A)  $20. 
B)  $1,500. 
C)  $3,000. 
D)  150. 
E)  $4,500. 
A)  $20. 
B)  $1,500. 
C)  $3,000. 
D)  150. 
E)  $4,500.

Question 10

In the summer of 2008,the price of gasoline increased greatly.If the demand curve for gasoline did not shift,which of the following occurred?

Accepted Answer

A)  Drivers received no consumer surplus after the price increase. 
B)  Consumer surplus increased if drivers drove less. 
C)  Consumer surplus decreased. 
D)  If consumers drove the same amount, they received less total benefit. 
E)  Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased. 
A)  Drivers received no consumer surplus after the price increase. 
B)  Consumer surplus increased if drivers drove less. 
C)  Consumer surplus decreased. 
D)  If consumers drove the same amount, they received less total benefit. 
E)  Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased.

Question 11

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 12

Economists conclude that the only way to measure fairness is

Accepted Answer

A)  to insure that the rules are fair. 
B)  to insure that the result is fair. 
C)  to insure that both the rules and the result are fair. 
D)  to compare the allocatively efficient quantity to the equilibrium quantity. 
E)  None of the above answers is correct. 
A)  to insure that the rules are fair. 
B)  to insure that the result is fair. 
C)  to insure that both the rules and the result are fair. 
D)  to compare the allocatively efficient quantity to the equilibrium quantity. 
E)  None of the above answers is correct.

Question 13

"Allocative efficiency in the production of cherries means that consumers can eat all of the cherries they desire." Is this statement true or false?

Accepted Answer

Allocative efficiency means that we are

Question 14

the maximum price people are willing to pay for a given quantity.In this view the curve is a marginal benefit curve.

Accepted Answer

The answer of the maximum price people are willing to...

Question 15

Producer surplus definitely exists when the

Accepted Answer

A)  price exceeds marginal benefit. 
B)  price exceeds marginal cost. 
C)  marginal cost exceeds the price. 
D)  marginal benefit exceeds the price. 
E)  marginal benefit exceeds the marginal cost. 
A)  price exceeds marginal benefit. 
B)  price exceeds marginal cost. 
C)  marginal cost exceeds the price. 
D)  marginal benefit exceeds the price. 
E)  marginal benefit exceeds the marginal cost.

Question 16

-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 17

The figure above shows the market for pizza.
-In the figure above,if pizza production is restricted to 5,000 pizzas a day,then marginal benefit ________ marginal cost,and ________ occurs.

Accepted Answer

A)  exceeds; overproduction 
B)  exceeds; underproduction 
C)  is below; overproduction 
D)  is below; underproduction 
E)  exceeds; efficient production 
A)  exceeds; overproduction 
B)  exceeds; underproduction 
C)  is below; overproduction 
D)  is below; underproduction 
E)  exceeds; efficient production

Question 18

Marginal cost is the opportunity cost of producing

Accepted Answer

A)  every unit possible. 
B)  zero units. 
C)  the first unit and only the first unit. 
D)  one more unit of a good or service. 
E)  None of the above answers is correct. 
A)  every unit possible. 
B)  zero units. 
C)  the first unit and only the first unit. 
D)  one more unit of a good or service. 
E)  None of the above answers is correct.

Question 19

In 2009,tickets to a Presidential Town Hall meeting were distributed to individuals through a random selection of those who registered on a website.The tickets were allocated by which method?

Accepted Answer

A)  lottery 
B)  majority rule 
C)  contest 
D)  first-come, first-served 
E)  personal characteristics 
A)  lottery 
B)  majority rule 
C)  contest 
D)  first-come, first-served 
E)  personal characteristics

Question 20

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

A supply curve is the same as a

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents: a.consumer surplus? b.producer surplus?

At the current production point on a nation's production possibilities frontier,the marginal benefit of a slice of pizza is 500 tacos while the marginal cost of producing a slice of pizza is 750 tacos.For the nation to produce at the point of allocative efficiency,what should be done?

Air pollution is an external cost because it

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

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Marginal benefit

Consumer surplus exists when

-In the figure above,the equilibrium market price is $20.The producer surplus equals

In the summer of 2008,the price of gasoline increased greatly.If the demand curve for gasoline did not shift,which of the following occurred?

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

Economists conclude that the only way to measure fairness is

"Allocative efficiency in the production of cherries means that consumers can eat all of the cherries they desire." Is this statement true or false?

the maximum price people are willing to pay for a given quantity.In this view the curve is a marginal benefit curve.

Producer surplus definitely exists when the

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

The figure above shows the market for pizza. -In the figure above,if pizza production is restricted to 5,000 pizzas a day,then marginal benefit marginal cost,and occurs.

Marginal cost is the opportunity cost of producing

In 2009,tickets to a Presidential Town Hall meeting were distributed to individuals through a random selection of those who registered on a website.The tickets were allocated by which method?

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

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 6: Efficiency and Fairness of Markets

A supply curve is the same as a

-The figure above shows the supply and demand curves for pizza.If the market is at its competitive equilibrium,what area in the graph above represents: a.consumer surplus? b.producer surplus?

At the current production point on a nation's production possibilities frontier,the marginal benefit of a slice of pizza is 500 tacos while the marginal cost of producing a slice of pizza is 750 tacos.For the nation to produce at the point of allocative efficiency,what should be done?

Air pollution is an external cost because it

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

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Marginal benefit

Consumer surplus exists when

-In the figure above,the equilibrium market price is $20.The producer surplus equals

In the summer of 2008,the price of gasoline increased greatly.If the demand curve for gasoline did not shift,which of the following occurred?

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

Economists conclude that the only way to measure fairness is

"Allocative efficiency in the production of cherries means that consumers can eat all of the cherries they desire." Is this statement true or false?

the maximum price people are willing to pay for a given quantity.In this view the curve is a marginal benefit curve.

Producer surplus definitely exists when the

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

The figure above shows the market for pizza. -In the figure above,if pizza production is restricted to 5,000 pizzas a day,then marginal benefit ________ marginal cost,and ________ occurs.

Marginal cost is the opportunity cost of producing

In 2009,tickets to a Presidential Town Hall meeting were distributed to individuals through a random selection of those who registered on a website.The tickets were allocated by which method?

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

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

The figure above shows the market for pizza. -In the figure above,if pizza production is restricted to 5,000 pizzas a day,then marginal benefit marginal cost,and occurs.

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