Question 1

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.

Question 2

Why does the problem of the big tradeoff arise when the government engages in the process of redistributing income using taxes and transfers?

Accepted Answer

There are two reasons why the big tradeo...

Question 3

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

Accepted Answer

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

Question 4

The figure above shows the supply curve for pizza and the market price of pizza.
-In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

Accepted Answer

A)   $6.
B)   $10.
C)   $8.
D)   $2.
E)   $4.

Question 5

Why is the demand curve the same as the marginal benefit curve?

Accepted Answer

The demand curve for a good tells us for...

Question 6

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

Accepted Answer

A)   $120.
B)   $90.
C)   $60.
D)   $0.
E)   None of the above answers is correct.

Question 7

Which of the following leads to a deadweight loss?
i.competition
ii.taxes
iii.consumer surplus
iv.monopoly

Accepted Answer

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

Question 8

-In the figure above,suppose the market is at equilibrium.Then area A is the

Accepted Answer

A)   marginal benefit.
B)   marginal cost.
C)   amount of the consumer surplus.
D)   amount of the producer surplus.
E)   deadweight loss.

Question 9

-In the figure above,suppose that $20 is the market equilibrium price.Which area is the consumer surplus?

Accepted Answer

A)   A
B)   B
C)   A + B
D)   B - A
E)   B ÷ A

Question 10

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

Accepted Answer

A)   A
B)   B
C)   C
D)   D
E)   Either point A or point D

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

Question 12

When society produces the combination of goods and services on the PPF that it values the most highly,society has

Accepted Answer

A)   achieved only production efficiency and definitely not allocative efficiency.
B)   achieved only allocative efficiency definitely not production efficiency.
C)   achieved both production efficiency and allocative efficiency.
D)   achieved a free lunch.
E)   perhaps achieved production efficiency and has perhaps achieved allocative efficiency.

Question 13

The producer surplus on a unit of a good is

Accepted Answer

A)   equal to the marginal benefit from the good minus its price.
B)   equal to the price of the good minus the marginal cost of producing it.
C)   always equal to consumer surplus.
D)   Both answers A and C are correct.
E)   Both answers B and C are correct.

Question 14

-In the above figure,if the market is in equilibrium,area A + area B + area C equals

Accepted Answer

A)   total surplus.
B)   consumer surplus.
C)   deadweight loss.
D)   producer surplus.
E)   total revenue.

Question 15

Jenn is willing to pay $75 for a purse and the purse's price is $60.What is Jenn's consumer surplus on this purse?

Accepted Answer

The consumer surplus equals the differen...

Question 16

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.

Question 17

The "fair rules" view of fairness is based on

Accepted Answer

A)   income transfers from the rich to the poor.
B)   property rights and voluntary exchange.
C)   utilitarianism.
D)   the big tradeoff.
E)   allocating resources using majority rule.

Question 18

-The figure above shows the supply curve for pizzas.
a.What is the marginal cost of the 20th pizza?
b.What is the minimum supply price of the 20th pizza?
c.If the price is $6 per pizza,what is the producer surplus on the 20th pizza?
d.If the price is $6 per pizza,what is the producer surplus for the total quantity of pizzas produced?
e.If the price is $8 per pizza,what is the producer surplus for the total quantity of pizzas produced?
f.If the price is $10 per pizza,what is the producer surplus for the total quantity of pizzas produced?

Accepted Answer

a.The marginal cost of the 20th pizza is...

Question 19

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's total benefit from consuming 15 sodas is

Accepted Answer

A)   $15.00.
B)   $26.25.
C)   $11.25.
D)   $0.
E)   None of the above answers is correct.

Question 20

When a product benefits people other than the buyer of the product,the product is said to have

Accepted Answer

A)   an external cost.
B)   an excludable cost.
C)   an external benefit.
D)   an excludable benefit.
E)   a subsidized benefit.

Exam 6: Efficiency and Fairness of Markets

-In the figure above,suppose the market is at equilibrium.Then area A is the

Correct Answer
verified

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

Correct Answer
verified

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

Correct Answer
verified

Why is the demand curve the same as the marginal benefit curve?

Correct Answer
verified
The demand curve for a good tells us for...
View Answer

Correct Answer
verified
a.The marginal cost of the 20th pizza is...
View Answer

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

Correct Answer
verified

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

Correct Answer
verified

-In the figure above,suppose that $20 is the market equilibrium price.Which area is the consumer surplus?

Correct Answer
verified

When society produces the combination of goods and services on the PPF that it values the most highly,society has

Correct Answer
verified

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

Correct Answer
verified

The "equality of opportunity" idea of fairness claims

Correct Answer
verified

The producer surplus on a unit of a good is

Correct Answer
verified

When a product benefits people other than the buyer of the product,the product is said to have

Correct Answer
verified

Which of the following leads to a deadweight loss? i.competition ii.taxes iii.consumer surplus iv.monopoly

Correct Answer
verified

Jenn is willing to pay $75 for a purse and the purse's price is $60.What is Jenn's consumer surplus on this purse?

Correct Answer
verified
The consumer surplus equals the differen...
View Answer

The "fair rules" view of fairness is based on

Correct Answer
verified

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's total benefit from consuming 15 sodas is

Correct Answer
verified

-In the above figure,if the market is in equilibrium,area A + area B + area C equals

Correct Answer
verified

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

Correct Answer
verified

Why does the problem of the big tradeoff arise when the government engages in the process of redistributing income using taxes and transfers?

Correct Answer
verified
There are two reasons why the big tradeo...
View Answer

Exam 6: Efficiency and Fairness of Markets

-In the figure above,suppose the market is at equilibrium.Then area A is the

Correct AnswerverifiedShow Answer

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why is the demand curve the same as the marginal benefit curve?

Correct AnswerverifiedThe demand curve for a good tells us for...View AnswerShow Answer

Correct Answerverifieda.The marginal cost of the 20th pizza is...View AnswerShow Answer

The figure above shows the supply curve for pizza and the market price of pizza. -In the figure above,the minimum price that must be offered for the 5,000th pizza a day to be produced is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

-In the figure above,suppose that $20 is the market equilibrium price.Which area is the consumer surplus?

Correct AnswerverifiedShow Answer

When society produces the combination of goods and services on the PPF that it values the most highly,society has

Correct AnswerverifiedShow Answer

-The figure above represents the competitive market for slices of key lime pie.When the price is $3,the total consumer surplus equals

Correct AnswerverifiedShow Answer

The "equality of opportunity" idea of fairness claims

Correct AnswerverifiedShow Answer

The producer surplus on a unit of a good is

Correct AnswerverifiedShow Answer

When a product benefits people other than the buyer of the product,the product is said to have

Correct AnswerverifiedShow Answer

Which of the following leads to a deadweight loss? i.competition ii.taxes iii.consumer surplus iv.monopoly

Correct AnswerverifiedShow Answer

Jenn is willing to pay $75 for a purse and the purse's price is $60.What is Jenn's consumer surplus on this purse?

Correct AnswerverifiedThe consumer surplus equals the differen...View AnswerShow Answer

The "fair rules" view of fairness is based on

Correct AnswerverifiedShow Answer

-The figure above shows Diane's demand curve for soda.The price of a soda is $1.00.Diane's total benefit from consuming 15 sodas is

Correct AnswerverifiedShow Answer

-In the above figure,if the market is in equilibrium,area A + area B + area C equals

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why does the problem of the big tradeoff arise when the government engages in the process of redistributing income using taxes and transfers?

Correct AnswerverifiedThere are two reasons why the big tradeo...View AnswerShow Answer

Correct Answer
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The demand curve for a good tells us for...
View Answer

Correct Answer
verified
a.The marginal cost of the 20th pizza is...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The consumer surplus equals the differen...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
There are two reasons why the big tradeo...
View Answer