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Principles of Macroeconomics Study Set 8
Exam 7: Consumers Producers and the Efficiency of Markets: Part B
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Question 41
True/False
All else equal,an increase in demand will cause an increase in producer surplus.
Question 42
True/False
If the government imposes a binding price floor in a market,then the consumer surplus in that market will increase.
Question 43
True/False
If the government imposes a binding price ceiling in a market,then the producer surplus in that market will increase.
Question 44
True/False
Joel has a 1966 Mustang,which he sells to Susie,an avid car collector.Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car.Susie's consumer surplus is $2,000.
Question 45
True/False
Efficiency refers to whether a market outcome is fair,while equality refers to whether the maximum amount of output was produced from a given number of inputs.
Question 46
True/False
The current policy on kidney donation effectively sets a price ceiling of zero.
Question 47
True/False
The cost of production plus producer surplus is the price a seller is paid.
Question 48
True/False
Total surplus in a market is consumer surplus minus producer surplus.
Question 49
True/False
If the government imposes a binding price floor in a market,then the consumer surplus in that market will decrease.
Question 50
True/False
Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve,up to the point of equilibrium.
Question 51
True/False
Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually has to pay for it.
Question 52
True/False
If a market is in equilibrium,then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good.
Question 53
True/False
If producing a soccer ball costs Jake $5,and he sells it for $40,his producer surplus is $35.
Question 54
True/False
Producer surplus is the cost of production minus the amount a seller is paid.
Question 55
True/False
For any given quantity,the price on a demand curve represents the marginal buyer's willingness to pay.
Question 56
True/False
Connie can clean windows in large office buildings at a cost of $1 per window.The market price for window-cleaning services is $3 per window.If Connie cleans 100 windows,her producer surplus is $200.