Exam 5: Efficiency and Equity

Although the efficient quantity to produce of any good is located where marginal social benefit and marginal social cost are equal, there will usually be other quantities where the sum of consumer and producer surplus are greater.

If a person will rent an apartment only to married couples over 30 years old, that person is allocating resources using a ________ allocation method.

-In the above figure, the total producer surplus at the efficient level of output is

-In the above figure, if five million CDs per month are produced and consumed, that is

Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price decreases from $9 to $8 then the consumer surplus from this unit will increase by

A market demand curve can be constructed by

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. At Kaffenia's efficient quantity of doughnuts

In the United States, resources are most often allocated by

Marginal cost is

Resource use is efficient when production is such that marginal social benefit is

Marginal benefit

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. For a consumer, the price they are willing to pay for each additional pound of coffee is

One of the problems associated with the utilitarianism is that it does NOT recognize that

When scarce resources can serve only one user at a time in sequence, which method works well for allocating the scarce resources?

In the market for tablet computers, the producer surplus will decrease if

-In the above figure, the efficient quantity of milk is

-In the above table, the efficient quantity of brownies is produced when the price of a brownie is equal to

-In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was

Which of the following statements about supply curves is CORRECT? I. A supply curve also can be a marginal cost curve. II) A supply curve tells the quantity of other goods and services that sellers must give up to produce another unit of the good.

Buyers receive a consumer surplus when the price exceeds the marginal benefit.