Question 1

Suppose the market for diamonds is a monopoly.We can expect

Accepted Answer

A) underproduction of diamonds. 
B) overproduction of diamonds. 
C) marginal social benefit to equal marginal social cost in the diamond market. 
D) an efficient quantity of diamonds. 
E) the allocation of diamonds to be first-come, first-served. 
A) underproduction of diamonds. 
B) overproduction of diamonds. 
C) marginal social benefit to equal marginal social cost in the diamond market. 
D) an efficient quantity of diamonds. 
E) the allocation of diamonds to be first-come, first-served.

Question 2

An external cost

Accepted Answer

A) is a marginal benefit. 
B) results in underproduction. 
C) is a payment from the government to a producer. 
D) is a cost that affects someone other than the seller. 
E) is a payment from a producer to the government. 
A) is a marginal benefit. 
B) results in underproduction. 
C) is a payment from the government to a producer. 
D) is a cost that affects someone other than the seller. 
E) is a payment from a producer to the government.

Question 3

Choose the correct statement.

Accepted Answer

A) The competitive market pushes the quantity produced to its efficient level. 
B) When the efficient quantity is produced in a competitive market, consumer surplus is maximized. 
C) Competitive equilibrium occurs when demand equals supply. 
D) When the efficient quantity is produced in a competitive market, producer surplus is maximized. 
E) When the efficient quantity is produced in a competitive market, producer surplus is minimized. 
A) The competitive market pushes the quantity produced to its efficient level. 
B) When the efficient quantity is produced in a competitive market, consumer surplus is maximized. 
C) Competitive equilibrium occurs when demand equals supply. 
D) When the efficient quantity is produced in a competitive market, producer surplus is maximized. 
E) When the efficient quantity is produced in a competitive market, producer surplus is minimized.

Question 4

A contest allocates resources to

Accepted Answer

A) a winner or a group of winners. 
B) an athlete. 
C) a gambler. 
D) the government. 
E) private firms. 
A) a winner or a group of winners. 
B) an athlete. 
C) a gambler. 
D) the government. 
E) private firms.

Question 5

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 100 units,the deadweight loss 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 6

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 consumer 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 7

The first-come,first-served method of resource allocation allocates resources to

Accepted Answer

A) the wealthiest. 
B) people who are willing to take risks. 
C) people who are not willing to take risks. 
D) the first in line. 
E) honest, hard-working people. 
A) the wealthiest. 
B) people who are willing to take risks. 
C) people who are not willing to take risks. 
D) the first in line. 
E) honest, hard-working people.

Question 8

According to John Rawls' modified utilitarianism,income should be redistributed until

Accepted Answer

A) incomes are equal. 
B) opportunities are equal. 
C) the poorest person is as well off as possible. 
D) the poorest person is as well off as possible, after incorporating the costs of income transfers. 
E) the big tradeoff is eliminated. 
A) incomes are equal. 
B) opportunities are equal. 
C) the poorest person is as well off as possible. 
D) the poorest person is as well off as possible, after incorporating the costs of income transfers. 
E) the big tradeoff is eliminated.

Suppose the market for diamonds is a monopoly.We can expect

An external cost

Choose the correct statement.

A contest allocates resources to

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 100 units,the deadweight loss is area

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 consumer surplus is area

The first-come,first-served method of resource allocation allocates resources to

According to John Rawls' modified utilitarianism,income should be redistributed until

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

Exam 5: Efficiency and Equity

Suppose the market for diamonds is a monopoly.We can expect

An external cost

Choose the correct statement.

A contest allocates resources to

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 100 units,the deadweight loss is area

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 consumer surplus is area

The first-come,first-served method of resource allocation allocates resources to

According to John Rawls' modified utilitarianism,income should be redistributed until

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