Question 1

Which of the following can result in a market producing an inefficient quantity of a good?
i.competition
ii.an external cost or an external benefit
iii.a tax

Accepted Answer

A)  i only 
B)  iii only 
C)  ii only 
D)  ii and iii 
E)  i and iii 
A)  i only 
B)  iii only 
C)  ii only 
D)  ii and iii 
E)  i and iii

Question 2

-The figure above shows the market for pizza.
a.If the price of a slice of pizza is $3,what is the consumer surplus of the 50th slice?
b.If the price of a slice of pizza is $3,what is the producer surplus of the 50th slice
c.What is the efficient quantity? What is the equilibrium quantity? What is the deadweight loss when the equilibrium quantity is produced?

Accepted Answer

a.Consumer surplus is the distance betwe

Question 3

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

Accepted Answer

A)  $15. 
B)  $10. 
C)  $40. 
D)  $20. 
E)  $50. 
A)  $15. 
B)  $10. 
C)  $40. 
D)  $20. 
E)  $50.

Question 4

The demand curve is also the

Accepted Answer

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

Which of the following can result in a market producing an inefficient quantity of a good? i.competition ii.an external cost or an external benefit iii.a tax

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

The demand curve is also the

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

Which of the following can result in a market producing an inefficient quantity of a good? i.competition ii.an external cost or an external benefit iii.a tax

Lauren and Katy each bought a new bike lock for $20.Both Lauren and Katy would have paid $25 for the lock.The total consumer surplus for Lauren and Katy taken together equaled

The demand curve is also the

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