Question 1

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

Accepted Answer

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

Question 2

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external cost. What is the marginal cost to the economy of Kaffenia of producing the four hundredth pound of coffee each day?

Accepted Answer

A)  $.50 per pound 
B)  $1.00 per pound 
C)  $2.00 per pound 
D)  $4.00 per pound 
A)  $.50 per pound 
B)  $1.00 per pound 
C)  $2.00 per pound 
D)  $4.00 per pound

Question 3

-In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is

Accepted Answer

A)  $1. 
B)  $3. 
C)  $5. 
D)  some amount not given in the above three answers. 
A)  $1. 
B)  $3. 
C)  $5. 
D)  some amount not given in the above three answers.

Question 4

-In the above figure, suppose the government subsidizes the production of milk so that milk production increases to 8 million gallons per day. What is the size of the deadweight loss?

Accepted Answer

The answer of  
-In the above figure, suppose the...

Question 5

Which curve is the same as the market demand curve? Why are the curves the same?

Accepted Answer

The market demand curve is the same as t

Question 6

-In the above figure, the efficient quantity of magazines to produce per day is

Accepted Answer

A)  0, because that is where the marginal social benefit exceeds the marginal social cost by as much as possible. 
B)  more than 0 and less than 300,000 magazines. 
C)  300,000 magazines. 
D)  more than 300,000 magazines. 
A)  0, because that is where the marginal social benefit exceeds the marginal social cost by as much as possible. 
B)  more than 0 and less than 300,000 magazines. 
C)  300,000 magazines. 
D)  more than 300,000 magazines.

Question 7

Hummel is a line of figurines based on the artistic style of German nun Maria Innocentia Hummel and have become a collector's item. The Hummel figurines are almost uniformly "cute." Lukas, Felix, Anya, and Hannah sell Hummel figurines through the internet. Their willingness to sell price for one figurine is: Lukas $240, Felix $180, Anya $150, Hannah $130. Suppose the price of a Hummel figurine is $150, what is Felix's producer surplus?

Accepted Answer

A)  Felix would not sell his figurine. 
B)  $180 
C)  $150 
D)  $30 
A)  Felix would not sell his figurine. 
B)  $180 
C)  $150 
D)  $30

Question 8

Allocative efficiency occurs when

Accepted Answer

A)  marginal social cost exceeds marginal social benefit. 
B)  marginal social benefit exceeds marginal social cost. 
C)  marginal social benefit equals marginal social cost. 
D)  total social benefit exceeds total social cost. 
A)  marginal social cost exceeds marginal social benefit. 
B)  marginal social benefit exceeds marginal social cost. 
C)  marginal social benefit equals marginal social cost. 
D)  total social benefit exceeds total social cost.

Question 9

If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible.

Accepted Answer

A) True 
 B)False

Question 10

One problem with the concept of utilitarianism is that

Accepted Answer

A)  there is a cost to transferring income from the rich to the poor. 
B)  there are increasing marginal costs. 
C)  there are decreasing marginal benefits. 
D)  markets cannot adjust to income redistribution. 
A)  there is a cost to transferring income from the rich to the poor. 
B)  there are increasing marginal costs. 
C)  there are decreasing marginal benefits. 
D)  markets cannot adjust to income redistribution.

Question 11

At the current level of output, the marginal social cost of tennis balls is greater than the marginal social benefit. Then

Accepted Answer

A)  more than the efficient quantity of tennis balls is being produced. 
B)  there is excess demand for tennis balls. 
C)  firms producing tennis balls must be earning negative profit. 
D)  too few tennis balls are being produced. 
A)  more than the efficient quantity of tennis balls is being produced. 
B)  there is excess demand for tennis balls. 
C)  firms producing tennis balls must be earning negative profit. 
D)  too few tennis balls are being produced.

Question 12

________ is the value of a good minus the price paid for it summed over the quantity bought.

Accepted Answer

A)  Producer surplus 
B)  Consumer surplus 
C)  Surplus 
D)  Shortage 
A)  Producer surplus 
B)  Consumer surplus 
C)  Surplus 
D)  Shortage

Question 13

-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.

Question 14

A person will choose to buy a good as long as

Accepted Answer

A)  marginal benefit is at least as great as price. 
B)  consumer surplus is positive. 
C)  marginal benefit is positive. 
D)  consumer surplus is at least as great as price. 
A)  marginal benefit is at least as great as price. 
B)  consumer surplus is positive. 
C)  marginal benefit is positive. 
D)  consumer surplus is at least as great as price.

Question 15

Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service.

Accepted Answer

A) True 
 B)False

Question 16

Consumer surplus is the

Accepted Answer

A)  value of a good expressed in dollars. 
B)  price of a good expressed in dollars. 
C)  value of a good minus the price paid for it summed over the quantity bought. 
D)  value of a good plus the price paid for it summed over the quantity bought. 
A)  value of a good expressed in dollars. 
B)  price of a good expressed in dollars. 
C)  value of a good minus the price paid for it summed over the quantity bought. 
D)  value of a good plus the price paid for it summed over the quantity bought.

Question 17

-The figure above shows the market for coffee. The ________ price that producers must be offered to get them to produce 10 million pounds of coffee per month is ________.

Accepted Answer

A)  maximum; $2.00 
B)  maximum; $3.50 
C)  minimum; $2.00 
D)  minimum; $3.50 
A)  maximum; $2.00 
B)  maximum; $3.50 
C)  minimum; $2.00 
D)  minimum; $3.50

Question 18

Explain the utilitarianism principle. How is it deficient?

Accepted Answer

Utilitarianism is a principle that state

Question 19

Robert Nozick asserts that fairness and efficiency result if

Accepted Answer

A)  there are price ceilings in the market. 
B)  there are external benefits and external costs in the market. 
C)  voluntary exchange occurs. 
D)  public goods are provided by government. 
A)  there are price ceilings in the market. 
B)  there are external benefits and external costs in the market. 
C)  voluntary exchange occurs. 
D)  public goods are provided by government.

Question 20

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When marginal social benefit is equal to the marginal social cost of coffee in Kaffenia

Accepted Answer

A)  three hundred pounds per day will be produced and consumed. 
B)  the efficient quantity of coffee is being produced and consumed. 
C)  any decrease in coffee consumption or production would result in a deadweight loss. 
D)  All of the above are correct. 
A)  three hundred pounds per day will be produced and consumed. 
B)  the efficient quantity of coffee is being produced and consumed. 
C)  any decrease in coffee consumption or production would result in a deadweight loss. 
D)  All of the above are correct.

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

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external cost. What is the marginal cost to the economy of Kaffenia of producing the four hundredth pound of coffee each day?

-In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is

-In the above figure, suppose the government subsidizes the production of milk so that milk production increases to 8 million gallons per day. What is the size of the deadweight loss?

Which curve is the same as the market demand curve? Why are the curves the same?

-In the above figure, the efficient quantity of magazines to produce per day is

Allocative efficiency occurs when

If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible.

One problem with the concept of utilitarianism is that

At the current level of output, the marginal social cost of tennis balls is greater than the marginal social benefit. Then

________ is the value of a good minus the price paid for it summed over the quantity bought.

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

A person will choose to buy a good as long as

Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service.

Consumer surplus is the

-The figure above shows the market for coffee. The price that producers must be offered to get them to produce 10 million pounds of coffee per month is .

Explain the utilitarianism principle. How is it deficient?

Robert Nozick asserts that fairness and efficiency result if

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When marginal social benefit is equal to the marginal social cost of coffee in Kaffenia

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 5: Efficiency and Equity

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

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external cost. What is the marginal cost to the economy of Kaffenia of producing the four hundredth pound of coffee each day?

-In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is

-In the above figure, suppose the government subsidizes the production of milk so that milk production increases to 8 million gallons per day. What is the size of the deadweight loss?

Which curve is the same as the market demand curve? Why are the curves the same?

-In the above figure, the efficient quantity of magazines to produce per day is

Allocative efficiency occurs when

If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible.

One problem with the concept of utilitarianism is that

At the current level of output, the marginal social cost of tennis balls is greater than the marginal social benefit. Then

________ is the value of a good minus the price paid for it summed over the quantity bought.

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

A person will choose to buy a good as long as

Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service.

Consumer surplus is the

-The figure above shows the market for coffee. The ________ price that producers must be offered to get them to produce 10 million pounds of coffee per month is ________.

Explain the utilitarianism principle. How is it deficient?

Robert Nozick asserts that fairness and efficiency result if

-The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When marginal social benefit is equal to the marginal social cost of coffee in Kaffenia

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

-The figure above shows the market for coffee. The price that producers must be offered to get them to produce 10 million pounds of coffee per month is .