Question 1

-In the figure above, what is the marginal social benefit of the 3,000,000th CD per month?

Accepted Answer

A)  $11.00 per CD 
B)  $8.00 per CD 
C)  $6.00 per CD 
D)  None of the above answers is correct. 
A)  $11.00 per CD 
B)  $8.00 per CD 
C)  $6.00 per CD 
D)  None of the above answers is correct.

Question 2

Overproduction compared to the efficient amount implies that for the last unit produced

Accepted Answer

A)  marginal social benefit exceeds marginal social cost. 
B)  marginal social benefit equals marginal social cost. 
C)  marginal social cost exceeds marginal social benefit. 
D)  the deadweight loss is zero. 
A)  marginal social benefit exceeds marginal social cost. 
B)  marginal social benefit equals marginal social cost. 
C)  marginal social cost exceeds marginal social benefit. 
D)  the deadweight loss is zero.

Question 3

-The figure above shows the market for coffee. When the efficient quantity of coffee is produced, the marginal social cost of the last pound is

Accepted Answer

A)  $2.50. 
B)  $3.50. 
C)  $3.00. 
D)  $2.00. 
A)  $2.50. 
B)  $3.50. 
C)  $3.00. 
D)  $2.00.

Question 4

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?

Accepted Answer

A)  The existence of many producers and sellers of doughnuts. 
B)  The existence of just one producer and seller of doughnuts. 
C)  Damage to the environment from the disposal of oil used to cook the doughnuts. 
D)  Both answers B and C are correct. 
A)  The existence of many producers and sellers of doughnuts. 
B)  The existence of just one producer and seller of doughnuts. 
C)  Damage to the environment from the disposal of oil used to cook the doughnuts. 
D)  Both answers B and C are correct.

Question 5

Explain the utilitarianism principle. How is it deficient?

Accepted Answer

Utilitarianism is a principle that state

Question 6

Marginal benefit is the benefit received from ________.

Accepted Answer

A)  consuming more goods or services 
B)  producing the efficient quantity 
C)  consuming the efficient quantity 
D)  consuming one more unit of a good or service 
A)  consuming more goods or services 
B)  producing the efficient quantity 
C)  consuming the efficient quantity 
D)  consuming one more unit of a good or service

Question 7

Fitness is a magazine for women about health and exercise. Fitness offers year subscriptions for $12 on their website. Jess, Ania, Mandy, and Chloe exercise together and each enjoy reading Fitness. Jess is willing to pay $10, Ania is willing to pay $16, Mandy is willing to pay $24, and Chloe is willing to pay $12 for a subscription to the magazine. What is the value of Chloe's consumer surplus?

Accepted Answer

A)  $0 
B)  $12 
C)  $10 
D)  Chloe will not purchase the magazine 
A)  $0 
B)  $12 
C)  $10 
D)  Chloe will not purchase the magazine

Question 8

Which of the following represents the marginal cost of a soda? I. The opportunity cost of producing another soda.
II) The minimum price someone is willing to pay for another soda.

Accepted Answer

A)  I only 
B)  II only 
C)  I and II 
D)  Neither I nor II 
A)  I only 
B)  II only 
C)  I and II 
D)  Neither I nor II

Question 9

If the marginal social benefit of pizza exceeds the marginal social cost of pizza, the economy is producing the efficient quantity of pizza.

Accepted Answer

A) True 
 B)False

Question 10

-In the above figure, the individual's consumer surplus will be highest if

Accepted Answer

A)  the price of ice cream is $5 per gallon. 
B)  the price of ice cream is $3 per gallon. 
C)  the price of ice cream is $2 per gallon. 
D)  ice cream is free. 
A)  the price of ice cream is $5 per gallon. 
B)  the price of ice cream is $3 per gallon. 
C)  the price of ice cream is $2 per gallon. 
D)  ice cream is free.

Question 11

Suppose a tax is imposed on a good. This will

Accepted Answer

A)  increase the price paid by the buyer and decrease the price received by the seller. 
B)  increase the price paid by the buyer but leave the price received by the seller unchanged. 
C)  decrease the price received by the seller but leave the price received by the buyer unchanged. 
D)  increase the price received by the seller and decrease the price paid by the buyer. 
A)  increase the price paid by the buyer and decrease the price received by the seller. 
B)  increase the price paid by the buyer but leave the price received by the seller unchanged. 
C)  decrease the price received by the seller but leave the price received by the buyer unchanged. 
D)  increase the price received by the seller and decrease the price paid by the buyer.

Question 12

-In the above figure, 300,000 purses per month is

Accepted Answer

A)  the efficient amount to produce because consumer surplus is maximized. 
B)  the efficient amount to produce because the sum of consumer surplus and producer surplus is maximized. 
C)  an inefficient amount to produce because consumer surplus is not maximized. 
D)  an inefficient amount to produce because the sum of consumer surplus and producer surplus is not maximized. 
A)  the efficient amount to produce because consumer surplus is maximized. 
B)  the efficient amount to produce because the sum of consumer surplus and producer surplus is maximized. 
C)  an inefficient amount to produce because consumer surplus is not maximized. 
D)  an inefficient amount to produce because the sum of consumer surplus and producer surplus is not maximized.

Question 13

The table below shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market.  
-Based on the table, what is Barry's marginal benefit from the 40th slice of pizza?

Accepted Answer

A)  $3 
B)  $5.50 
C)  $0.50 
D)  $12 
A)  $3 
B)  $5.50 
C)  $0.50 
D)  $12

Question 14

-The figure above shows the market demand curve for pizza.
a) What is the marginal social benefit of the 20th pizza?
b) What is the maximum price a consumer is willing to pay for the 20th pizza?
c) If the price of a pizza is $6, what is the consumer surplus of the 20th pizza?
d) If the price of a pizza is $10, what is the consumer surplus?
e) If the price of a pizza is $6, what is the consumer surplus?

Accepted Answer

a) The marginal social benefit of the 20

Question 15

-In the above figure, if the market price is $100 per ton, then the firm's producer surplus on the second ton of wheat is

Accepted Answer

A)  $25. 
B)  $50. 
C)  $75. 
D)  $100. 
A)  $25. 
B)  $50. 
C)  $75. 
D)  $100.

Question 16

If there are no external costs or benefits, no price or quantity regulations , no taxes or subsidies, and the good is not a public good or a common resource, then efficiency is

Accepted Answer

A)  achieved when a monopoly produces the good. 
B)  achieved when the good is produced in a competitive market. 
C)  achieved when the amount of output exceeds the amount produced in a competitive market. 
D)  unrelated to the amount produced in a competitive market. 
A)  achieved when a monopoly produces the good. 
B)  achieved when the good is produced in a competitive market. 
C)  achieved when the amount of output exceeds the amount produced in a competitive market. 
D)  unrelated to the amount produced in a competitive market.

Question 17

If the marginal cost of producing hair styling decreases, then the efficient quantity of hair stylings to produce ________.

Accepted Answer

A)  depends on the marginal benefit 
B)  remains the same 
C)  decreases 
D)  increases 
A)  depends on the marginal benefit 
B)  remains the same 
C)  decreases 
D)  increases

Question 18

If resources are used efficiently, then ________.

Accepted Answer

A)  marginal social cost is minimized 
B)  consumer surplus plus producer surplus is maximized 
C)  consumer surplus equals producer surplus 
D)  producer surplus is maximized 
A)  marginal social cost is minimized 
B)  consumer surplus plus producer surplus is maximized 
C)  consumer surplus equals producer surplus 
D)  producer surplus is maximized

Question 19

The table below shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market.  
-Based on the table, what is the marginal social benefit from the 45th slice of pizza?

Accepted Answer

A)  $3.50 
B)  $3.25 
C)  $0.50 
D)  $9 
A)  $3.50 
B)  $3.25 
C)  $0.50 
D)  $9

Question 20

-In the above figure, if the market produces the efficient amount of purses, then consumer surplus equals triangle

Accepted Answer

A)  abc. 
B)  bcd. 
C)  adc. 
D)  cgf. 
A)  abc. 
B)  bcd. 
C)  adc. 
D)  cgf.

Exam 5: Efficiency and Equity

-In the figure above, what is the marginal social benefit of the 3,000,000th CD per month?

Overproduction compared to the efficient amount implies that for the last unit produced

-The figure above shows the market for coffee. When the efficient quantity of coffee is produced, the marginal social cost of the last pound is

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?

Explain the utilitarianism principle. How is it deficient?

Marginal benefit is the benefit received from ________.

Which of the following represents the marginal cost of a soda? I. The opportunity cost of producing another soda. II) The minimum price someone is willing to pay for another soda.

If the marginal social benefit of pizza exceeds the marginal social cost of pizza, the economy is producing the efficient quantity of pizza.

-In the above figure, the individual's consumer surplus will be highest if

Suppose a tax is imposed on a good. This will

-In the above figure, 300,000 purses per month is

The table below shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market. -Based on the table, what is Barry's marginal benefit from the 40th slice of pizza?

-In the above figure, if the market price is $100 per ton, then the firm's producer surplus on the second ton of wheat is

If there are no external costs or benefits, no price or quantity regulations , no taxes or subsidies, and the good is not a public good or a common resource, then efficiency is

If the marginal cost of producing hair styling decreases, then the efficient quantity of hair stylings to produce ________.

If resources are used efficiently, then ________.

The table below shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market. -Based on the table, what is the marginal social benefit from the 45th slice of pizza?

-In the above figure, if the market produces the efficient amount of purses, then consumer surplus equals triangle

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters