Test Your Microeconomics Knowledge!

15 Questions

Settings
Please wait...
Test Your Microeconomics Knowledge!

Econ 355: Microeconomics


Questions and Answers
  • 1. 
    Refer to Figure 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. 
    Refer to Figure 1 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. 
    Refer to Figure 1 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. 
    Refer to Figure 1. 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. 
    Refer to Figure 1 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. 
    Refer to Figure 1 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. 
    Refer to Figure 1 If the government establishes a price ceiling of $1.00, the resulting deadweight loss will be
    • A. 

      $1.50

    • B. 

      $200

    • C. 

      $150

    • D. 

      $300

    • E. 

      $600

  • 10. 
    Refer to Figure 1 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. 
    Deadweight 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. 
    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