Question 1

An idea of fairness that emphasizes equality of opportunity is

Accepted Answer

A) fair results. 
B) fair rules. 
C) fair incomes. 
D) utilitarianism. 
E) modified utilitarianism. 
A) fair results. 
B) fair rules. 
C) fair incomes. 
D) utilitarianism. 
E) modified utilitarianism.

Question 2

Table 5.2.3
   
If the firm sells the first movie at a price of $7, what is the producer surplus on that movie?

Accepted Answer

A) $28 
B) $3 
C) $7 
D) $6 
E) $1
Answer: B
Diff: 2 Type: MC
Topic: Benefit, Cost, and Surplus
Use the information below to answer the following question.
   
Figure 5.2.3
-Consider the demand and supply curves in Figure 5.2.3.If the market is at the competitive equilibrium,which area in the diagram indicates the cost of producing the quantity sold? 
A) ABC 
B) AEC 
C) EBC 
D) 0BCD 
E) 0ECD 
A) $28 
B) $3 
C) $7 
D) $6 
E) $1
Answer: B
Diff: 2 Type: MC
Topic: Benefit, Cost, and Surplus
Use the information below to answer the following question.
   
Figure 5.2.3
-Consider the demand and supply curves in Figure 5.2.3.If the market is at the competitive equilibrium,which area in the diagram indicates the cost of producing the quantity sold? 
A) ABC 
B) AEC 
C) EBC 
D) 0BCD 
E) 0ECD

Question 3

The essence of philosopher Robert Nozick's proposal is that

Accepted Answer

A) fairness works on the basis of fair outcomes. 
B) fairness must be based on fairness of rules. 
C) involuntary exchange is fair. 
D) all of the above. 
E) none of the above. 
A) fairness works on the basis of fair outcomes. 
B) fairness must be based on fairness of rules. 
C) involuntary exchange is fair. 
D) all of the above. 
E) none of the above.

Question 4

Use the figure below to answer the following questions.
   
Figure 5.3.1
-Refer to Figure 5.3.1.At the efficient quantity,the price is

Accepted Answer

A) $20 a unit. 
B) $15 a unit. 
C) $10 a unit. 
D) $5 a unit. 
E) zero. 
A) $20 a unit. 
B) $15 a unit. 
C) $10 a unit. 
D) $5 a unit. 
E) zero.

Question 5

Use the figure below to answer the following questions.
   
Figure 5.2.2
-Refer to Figure 5.2.2.If the price rises from P? to P?,the change in consumer surplus is

Accepted Answer

A) A. 
B) B plus C. 
C) D plus E. 
D) A plus B plus C. 
E) A plus B plus C plus D plus E. 
A) A. 
B) B plus C. 
C) D plus E. 
D) A plus B plus C. 
E) A plus B plus C plus D plus E.

Question 6

What is the producer surplus for the market from the production of the 100th unit of a good?

Accepted Answer

A) the marginal cost of producing the 100th unit 
B) the marginal benefit from the 100th unit 
C) the opportunity cost of producing the 100th unit 
D) the marginal social benefit from the 100th unit minus the marginal cost of producing the 100th unit 
E) the price paid for the 100th unit minus the marginal social cost of producing the 100th unit 
A) the marginal cost of producing the 100th unit 
B) the marginal benefit from the 100th unit 
C) the opportunity cost of producing the 100th unit 
D) the marginal social benefit from the 100th unit minus the marginal cost of producing the 100th unit 
E) the price paid for the 100th unit minus the marginal social cost of producing the 100th unit

Question 7

The two big approaches to thinking about fairness are ________.

Accepted Answer

A) it's not fair if my income is less than yours and it's not fair if my opportunities in life are less than yours 
B) it's not fair if the result isn't fair and it's not fair if the rules aren't fair 
C) the fairness of democracy and the fairness of central planning 
D) the fairness of income equality and the fairness of educational equality 
E) it's not fair if you are treated unkindly and it's not fair if you treat someone unkindly 
A) it's not fair if my income is less than yours and it's not fair if my opportunities in life are less than yours 
B) it's not fair if the result isn't fair and it's not fair if the rules aren't fair 
C) the fairness of democracy and the fairness of central planning 
D) the fairness of income equality and the fairness of educational equality 
E) it's not fair if you are treated unkindly and it's not fair if you treat someone unkindly

Question 8

A market supply curve is

Accepted Answer

A) the horizontal sum of the individual supply curves. 
B) downward sloping. 
C) the vertical sum of the individual supply curves. 
D) is downward sloping initially, and then upward sloping. 
E) is represented by a line with a constant slope. 
A) the horizontal sum of the individual supply curves. 
B) downward sloping. 
C) the vertical sum of the individual supply curves. 
D) is downward sloping initially, and then upward sloping. 
E) is represented by a line with a constant slope.

Question 9

The demand curve for a good is the same as the

Accepted Answer

A) marginal cost curve of that good. 
B) marginal benefit curve for that good. 
C) consumer surplus curve of that good. 
D) production possibilities frontier (PPF). 
E) none of the above. 
A) marginal cost curve of that good. 
B) marginal benefit curve for that good. 
C) consumer surplus curve of that good. 
D) production possibilities frontier (PPF). 
E) none of the above.

Question 10

Use the figure below to answer the following questions.
   
Figure 5.2.1
-Consider Figure 5.2.1.When the price is $4,what is the consumer surplus from the second unit of the good?

Accepted Answer

A) $7 
B) $3 
C) $4 
D) $1 
E) $10 
A) $7 
B) $3 
C) $4 
D) $1 
E) $10

Question 11

In the Canadian economy,the command system

Accepted Answer

A) is not used at all. 
B) is used occasionally inside firms and government departments. 
C) is used only by private companies. 
D) is used extensively in place of markets. 
E) is used extensively inside firms and government departments. 
A) is not used at all. 
B) is used occasionally inside firms and government departments. 
C) is used only by private companies. 
D) is used extensively in place of markets. 
E) is used extensively inside firms and government departments.

Question 12

A market demand curve is constructed by

Accepted Answer

A) adding the prices all consumers are willing to pay for any given quantity. 
B) determining the quantity supplied by all producers at all possible prices. 
C) subtracting the quantity supplied by all producers from the quantity demanded by all individuals at each price. 
D) adding the quantities demanded by all individuals at each price. 
E) subtracting the quantity demanded by all individuals from the quantity supplied by all producers at each price. 
A) adding the prices all consumers are willing to pay for any given quantity. 
B) determining the quantity supplied by all producers at all possible prices. 
C) subtracting the quantity supplied by all producers from the quantity demanded by all individuals at each price. 
D) adding the quantities demanded by all individuals at each price. 
E) subtracting the quantity demanded by all individuals from the quantity supplied by all producers at each price.

Question 13

Except for the very last unit of a good sold,the price paid by consumers of that good for an additional unit is

Accepted Answer

A) less than the marginal social benefit from that unit. 
B) more than the marginal social benefit from that unit. 
C) less than the marginal social cost of producing that unit. 
D) less than the opportunity cost of producing that unit. 
E) equal to consumer surplus. 
A) less than the marginal social benefit from that unit. 
B) more than the marginal social benefit from that unit. 
C) less than the marginal social cost of producing that unit. 
D) less than the opportunity cost of producing that unit. 
E) equal to consumer surplus.

Question 14

Which of the following is true?

Accepted Answer

A) When resources are allocated on the basis of personal characteristics, all people who are willing and able to pay the price get the resource. 
B) When the range of activities to be monitored is large and complex, a command system allocates resources better than a market price. 
C) When a market price allocates resources, some people who are willing and able to pay that price don't get the resource. 
D) Force provides the state with an effective method of transferring wealth from the rich to the poor. 
E) When resources are allocated by force, people with the "right" characteristics get the resources. 
A) When resources are allocated on the basis of personal characteristics, all people who are willing and able to pay the price get the resource. 
B) When the range of activities to be monitored is large and complex, a command system allocates resources better than a market price. 
C) When a market price allocates resources, some people who are willing and able to pay that price don't get the resource. 
D) Force provides the state with an effective method of transferring wealth from the rich to the poor. 
E) When resources are allocated by force, people with the "right" characteristics get the resources.

Question 15

Producer surplus is

Accepted Answer

A) the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept. 
B) the excess of the amount received from the sale of a good or service over the cost of producing it. 
C) equal to the marginal cost of production. 
D) equal to the area under the supply curve. 
E) the total amount paid for the good. 
A) the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept. 
B) the excess of the amount received from the sale of a good or service over the cost of producing it. 
C) equal to the marginal cost of production. 
D) equal to the area under the supply curve. 
E) the total amount paid for the good.

Question 16

At West,recognized as the "jewel in Vancouver's culinary crown",reservations are essential.At Le Bistro Chez Michel,a restaurant in North Vancouver,reservations are recommended.At Vij's,a restaurant not too far from the University of British Columbia,reservations are not accepted.
West allocates scarce table resources by ________,Le Bistro Chez Michel allocates scarce table resources by ________,and Vij's allocates scarce table resources by ________.

Accepted Answer

A) market price;market price and force;force 
B) personal characteristics;personal characteristics and first-come, first-served;first-come, first-served 
C) a command system;a combination of a command system and first-come, first-served;first-come, first-served 
D) first-come, first-served;first-come, first-served;first-come, first-served 
E) personal characteristics;personal characteristics;first-come, first-served 
A) market price;market price and force;force 
B) personal characteristics;personal characteristics and first-come, first-served;first-come, first-served 
C) a command system;a combination of a command system and first-come, first-served;first-come, first-served 
D) first-come, first-served;first-come, first-served;first-come, first-served 
E) personal characteristics;personal characteristics;first-come, first-served

Question 17

Use the figure below to answer the following questions.
   
Figure 5.3.2
-Refer to Figure 5.3.2.If the level of output is 150 units,the producer surplus is area

Accepted Answer

A) BCF. 
B) ACG. 
C) DCE. 
D) ACH. 
E) HCG. 
A) BCF. 
B) ACG. 
C) DCE. 
D) ACH. 
E) HCG.

Question 18

When a scarce resource is allocated to someone who is the winner,the method of resource allocation is

Accepted Answer

A) a lottery. 
B) a contest. 
C) first-come, first-served. 
D) force. 
E) personal characteristics. 
A) a lottery. 
B) a contest. 
C) first-come, first-served. 
D) force. 
E) personal characteristics.

Question 19

The marginal cost of producing one more hot dog is $1.00.The price of a hot dog is $1.50.The producer surplus from selling one more hotdog is

Accepted Answer

A) $1.00. 
B) $1.50. 
C) $0.50. 
D) zero. 
E) $2.50. 
A) $1.00. 
B) $1.50. 
C) $0.50. 
D) zero. 
E) $2.50.

Question 20

A used truck has a sticker price of $21,000.Arthur decided that he would pay no more than $19,500 for this truck.He bought the truck for $19,250.Arthur obtained a consumer surplus of

Accepted Answer

A) $21,000. 
B) $19,500. 
C) $19,250. 
D) $1,750. 
E) $250. 
A) $21,000. 
B) $19,500. 
C) $19,250. 
D) $1,750. 
E) $250.

Exam 5: Efficiency and Equity

An idea of fairness that emphasizes equality of opportunity is

The essence of philosopher Robert Nozick's proposal is that

Use the figure below to answer the following questions. Figure 5.3.1 -Refer to Figure 5.3.1.At the efficient quantity,the price is

Use the figure below to answer the following questions. Figure 5.2.2 -Refer to Figure 5.2.2.If the price rises from P? to P?,the change in consumer surplus is

What is the producer surplus for the market from the production of the 100th unit of a good?

The two big approaches to thinking about fairness are ________.

A market supply curve is

The demand curve for a good is the same as the

Use the figure below to answer the following questions. Figure 5.2.1 -Consider Figure 5.2.1.When the price is $4,what is the consumer surplus from the second unit of the good?

In the Canadian economy,the command system

A market demand curve is constructed by

Except for the very last unit of a good sold,the price paid by consumers of that good for an additional unit is

Which of the following is true?

Producer surplus is

Use the figure below to answer the following questions. Figure 5.3.2 -Refer to Figure 5.3.2.If the level of output is 150 units,the producer surplus is area

When a scarce resource is allocated to someone who is the winner,the method of resource allocation is

The marginal cost of producing one more hot dog is $1.00.The price of a hot dog is $1.50.The producer surplus from selling one more hotdog is

A used truck has a sticker price of $21,000.Arthur decided that he would pay no more than $19,500 for this truck.He bought the truck for $19,250.Arthur obtained a consumer surplus of

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

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters