A Quick Microeconomics Knowledge Test!
(53).jpg "A Quick Microeconomics Knowledge Test! - Quiz")
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- 1.
If the market is in equilibrium, the consumer surplus earned by the buyer of the 100th unit is- A.
$0.50
- B.
$0.75
- C.
$1.50
- D.
$2.00
- E.
$2.75
- 2.
If the market is in equilibrium, the producer surplus earned by the seller of the 100th
- A.
$0.50
- B.
$0.75
- C.
$1.50
- D.
$2.00
- E.
$2.75
- 3.
If the market is in equilibrium, total consumer surplus is
- A.
$1
- B.
$3
- C.
$200
- D.
$400
- E.
$600
- 4.
Refer to Figure 1 If the market is in equilibrium, total producer surplus is
- A.
$2
- B.
$3
- C.
$200
- D.
$400
- E.
$600
- 5.
If the market is in equilibrium, total consumer and producer surplus is
- A.
$0
- B.
$4
- C.
$5
- D.
$600
- E.
$800
- 6.
Refer to Figure 1 If the government establishes a price ceiling of $1.00, how many pounds of berries will be sold?
- A.
200
- B.
300
- C.
400
- D.
600
- E.
800
- 7.
If the government establishes a price ceiling of $1.00, consumer surplus will
- A.
Fall by $50
- B.
Fall by $150
- C.
Remain the same
- D.
Rise by $50
- E.
Rise by $150
- 8.
If the government establishes a price ceiling of $1.00, producer surplus will
- A.
Fall by $150
- B.
Fall by $300
- C.
Remain the same
- D.
Rise by $150
- E.
Rise by $300
- 9.
If the government establishes a price ceiling of $1.00, the resulting dead weight loss will be
- A.
$1.50
- B.
$200
- C.
$150
- D.
$300
- E.
$600
- 10.
If the government establishes a price ceiling of $1.00, total consumer and producer surplus will be
- A.
$1.50
- B.
$300
- C.
$450
- D.
$500
- E.
$600
- 11.Consumer surplus measures
- A.
The extra amount that a consumer must pay to obtain a marginal unit of a good or service.
- B.
The excess demand that consumers have when a price ceiling holds prices below their equilibrium.
- C.
The benefit that consumers receive from a good or service beyond what they pay.
- D.
Gain or loss to consumers from price fixing.
- 12.Producer surplus is measured as the
- A.
Area under the demand curve above market price
- B.
Entire area under the supply curve
- C.
Area under the demand curve above the supply curve
- D.
Area above the supply curve up to the market price
- 13.Dead weight loss refers to
- A.
Losses in consumer surplus associated with excess government regulations.
- B.
Situations where market prices fail to capture all of the costs and benefits of a policy.
- C.
Net losses in total surplus.
- D.
Losses due to the policies of labor unions.
- 14.When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ______________ and the quantity demanded to ______________.
- A.
Fall; rise
- B.
Fall; fall
- C.
Rise; rise
- D.
Rise; fall
- 15.Which of the following policies could lead to a deadweight loss?
- A.
Price ceilings
- B.
Price floors
- C.
Policies prohibiting human cloning
- D.
All of the above
- E.
(a) and (b) only
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