Exam 5: Efficiency and Equity

If you increase your consumption of pop by one additional can a week, your marginal benefit from this last can is $1.00.For you, the ________ this last can of pop is $1.00

A contest allocates resources to

Sal likes to eat pizza.The ________ is the maximum amount that Sal is willing to pay for one more slice of pizza.

If we produce one more bottle of water,

Table 5.2.2 If the firm sells the fifth movie at a price of $7, what is the producer surplus on that movie? -The marginal cost for Morgan's Marvellous Movies is given in the following table:

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?

As the quantity of hot dogs demanded increases,

In the Canadian economy, the command system

Producer surplus is

Use the table below to answer the following question. Table 5.2.4 -Table 5.2.4 shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market.What is the marginal social benefit from the 45th slice of pizza?

A monopoly leads to

Use the figure below to answer the following questions. Figure 5.2.2 -Refer to Figure 5.2.2 If the price is P₁, consumer surplus is

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

An idea of fairness that emphasizes equality of opportunity is

The demand curve for a good is the same as the

At current output, the marginal social benefit from Furbys is greater than marginal social cost.To achieve an efficient allocation, which of the following must occur? (1)Furby output must increase.(2)Furby output must decrease.(3)the marginal social benefit of Furbys will rise.(4)the marginal social cost of Furbys will fall.

As a method of resource allocation, force

In a command system, resources are allocated by

According to the "big tradeoff,"

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 200 units, the deadweight loss is area