Exam 5: Efficiency and Equity

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market. -Using the table, Fred's marginal cost of the 200th slice of pizza is

The big tradeoff is a tradeoff between

At the current quantity of table saws, the marginal social cost is more than the marginal social benefit. Then

-In the above figure, if the price is $2, then the total consumer surplus is

The supplier of your ________ is most likely a monopoly.

Meat at the supermarket has contributed to increase in food prices in 2010, and high feed and fuel prices mean that steak will likely cost a lot more this fall. The price of feed has increased 50 percent and hay has doubled from two years ago. Based on this information, which of the following is true in the market for beef?

Suppose the government considers placing a tax on business profits o that businesses decrease their production and generate a deadweight loss. Revenues from the tax would be used to boost the incomes of the poor. The decision to levy the tax implies that in this case, the government

Considering all costs of production, the marginal cost of producing a hot dog is $1.00. The price of a hot dog is $1.50. Thus, the producer surplus from this hot dog is

Explain how the invisible hand delivers an efficient market outcome.

Among the sources of economic inefficiency are all of the following EXCEPT

Allocating resources by the order of someone in authority is a ________ allocation method.

When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus.

Charlie's consumer surplus from the first slice of pizza he buys is greater than the consumer surplus from the second slice because of

The marginal social benefit curve for a product can be the same as the good's

If the government subsidizes the production of a good,

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day?

Charlene is willing to pay $5.00 for a sandwich. If Charlene must pay ________ for a sandwich, she ________.

-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. At the efficient quantity, the minimum supply-price of a DVD is ________ and the value of a DVD is ________.

Which of the following correctly defines utilitarianism?

At the efficient level of production, ________.