Exam 6: Efficiency and Fairness of Markets

-The figure above shows Kaley's marginal benefit from swimming with manatees (manatee is another name for a sea cow or dugong) and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of

-The figure above shows the marginal benefit and marginal cost curves for pizza. In the figure, what is the efficient quantity of pizza?

At a competitive equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities,

A benefit that accrues to people other than the buyers of a good is known as ________ benefit.

-In the figure above, if the market price is $12, then the total consumer surplus is

-In the above figure, if the market is in equilibrium, area A + area B + area C equals

-In the above figure, what is the marginal cost of the 4th pizza?

Which of the following is part of the cost of income transfers?

-In the figure above, suppose the market is at equilibrium. Then area A is the

Jake just bought a new hockey stick. When he was leaving the shop, he thought he had such a great deal and would have paid $50 more dollars for the stick. Jake received

When society produces the combination of goods and services on the PPF that it values the most highly, society has

In the figure above, at the market price of $15, the consumer surplus equals

Efficiency occurs in a market when

-In the above figure, the market is at its equilibrium. Area A + area B is equal to

The supply curve is upward sloping because of

Which of the following government policies ensures market efficiency?

-The figure above shows a nation's production possibilities frontier. If the marginal cost equals the marginal benefit at point A when 4 million pizzas are produced,

The consumer acquires a consumer surplus on a good if the marginal benefit is

In general, as the consumption of a good or service increases, the marginal benefit from consuming that good or service

When there is market failure so that a market produces less than the efficient amount,