Eco 102 H Review (chapter 7: Consumers, Producers And The Efficiency Of Markets)

31 Questions  I  By [email protected] on January 7, 2012
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1.  Positive statements answers the questions (what is) while normative statements answer the question (what should be).
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B.
2.  What is the study of the allocation of resources which affects the economic well-being?
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3.  The equilibrium of supply and demand in a market minimize the total benefit received by buyers and sellers. 
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4.  Each buyer's maximum is called his ______ , and measures how much that buyer values the good. 
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5.  It is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. 
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6.  What is the relationship between consumer surplus and the demand cruve? 
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7.  Marginal buyers/sellers are the ones: 
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8.  We can't measure consumer surplus using the demand curve. 
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9.  What happens to the graph of a market with so many buyers? 
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10.  Our goal in developing the concept of consumer surplus is: 
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11.  Consumer surplus is a good measure of ecnomic well-being if policymakers want to respect the preferences of sellers. 
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12.  In most market, producer surplus does reflect economic well-being. 
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13.  The measure of a producer's willingness to sell his/her services.
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14.  The area ____ the price and ____ the supply curve measures the producer surplus in a market.
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15.  _____ and _____ are the basic tools that economists use to study the welfare of buyers and sellers. 
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16.  Total surplus = Value to buyers - Cost to sellers
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17.  If an allocation of resources ______ , we say that the allocation exhibits efficiency.
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18.  Equslity - that is, whether the various buyers and sellers in the market:
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19.  2 INSIGHTS ABOUT MARKET OUTCOMES (1) Free markets allocate the supply of good to the buyers:
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20.  2 INSIGHTS ABOUT MARKET OUTCOMES (2) Free markets allocate the demand for goods to the sellers who:
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21.  The social planner cannot increase the economic well-being by changing the allocation of consumption among buyers or the allocation of production among sellers.
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22.  Free markets produce the quantity of goods that maximizes the: 
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23.  The equilibrium outcome is always an efficient allocation of resources.
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24.  Society is lucky because social planners intervene.
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25.  Centrally planned government ___ work very well.
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26.  What is the best way to organize the economic activity?
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27.  Many economists believe that there would be large benefits to allowing a free market in organs.
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28.  In the world, competition is sometimes far from perfect. 
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29.  What are the two assumptions we made in this chapter?
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30.  Market power and externalities are examples of a general phenomen called:
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31.  French phrase that refers to free market:
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B.
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