We have sent an email with your new password.


Microeconomics [ch. 7]

35 Questions  I  By Emy_2
Economics Quizzes & Trivia
Consumers, Producers, and the Efficiency of Markets

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  Consumer surplus is the amount a buyer is willing to pay for a good minus the seller's cost
A.
B.
2.  If the demand curve in a market is stationary, consumer surplus decreases when the price in the market increases
A.
B.
3.  If your willingness to pay for a hamburger is $3.00 and the price is $2.00, your consumer surplus is $5.00
A.
B.
4.  Producer surplus is a measure of the unsold inventories of suppliers in a market
A.
B.
5.  Consumer surplus is a good measure of buyers' benefits if buyers are rational
A.
B.
6.  Cost to the seller includes the opportunity cost of the seller's time
A.
B.
7.  The height of the supply curve is the marginal seller's cost
A.
B.
8.  Total surplus is the cost to sellers minus the value to buyers
A.
B.
9.  Free markets are efficient because they allocate output to buyers who have a willingness to pay that is below the price
A.
B.
10.  Producer surplus is the area above the supply curve and below the price
A.
B.
11.  The major advantage of allowing free markets to allocate resources is that the outcome of the allocation is efficent
A.
B.
12.  Equilibrium in a competitive market maximizes total surplus
A.
B.
13.  The two main types of market failure are market power and externalities
A.
B.
14.  Externalities are side effects, such as pollution, that are not taken into account by the buyers and sellers in a market
A.
B.
15.  Producing more of a product always adds to total surplus
A.
B.
16.  Consumer surplus is the area
A.
B.
C.
D.
E.
17.  A buyer's willingness to pay is
A.
B.
C.
D.
E.
18.  If a buyer's willingness to pay for a new Honda is $20,000 and she i able to actually buy it for $18,000, her consumer surplus is
A.
B.
C.
D.
E.
19.  An increase in the price of a good along a stationary demand curve
A.
B.
C.
D.
20.  Suppose there are three identical vases available to be purchased.  Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 for one, and buyer 3 is willing to pay $20 for one.  If the rpice is $25, how many vases will be sold and what is the value of consumer surplus in this market?
A.
B.
C.
D.
E.
21.  Producer surplus is the area
A.
B.
C.
D.
E.
22.  If a benevolent planner chooses to produce less than the equilibrium quantity of a good, then
A.
B.
C.
D.
E.
23.  If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then
A.
B.
C.
D.
E.
24.  The seller's cost of production is
A.
B.
C.
D.
E.
25.  Total surplus is the area
A.
B.
C.
D.
E.
26.  An increase in the price of a good along a stationary supply curve
A.
B.
C.
D.
27.  Adam Smith's "invisible hand" concept suggests that a competitive market outcome
A.
B.
C.
D.
28.  In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should
A.
B.
C.
D.
29.  If buyers are rational and there is no market failure,
A.
B.
C.
D.
E.
30.  If a producer has market power (can influence the price of the product in the market) then free market solutions
A.
B.
C.
D.
31.  If a market is efficient, then
A.
B.
C.
D.
E.
32.  If a market generates a side effect or externality, then free market solutions
A.
B.
C.
D.
33.  Medical care clearly enhances people's lives.  Therefore, we should consume medical care until
A.
B.
C.
D.
34.  Joe has ten baseball gloves and Sue has none.  A baseball glove costs $50 to produce.  If Joe values an additional baseball glove at $100 and Sue values a baseball glove at $40, then to maximize
A.
B.
C.
D.
35.  Suppose that the price of a new bicycle is $300.  Sue values a new bicycle at $400.  If costs $200 for the seller to produce the new bicycle.  What is the value of total surplus if Sue buys a bew bike?
A.
B.
C.
D.
E.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz