Exam 5: Efficiency and Equity

The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199. Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Ahmed's consumer surplus?

-In the figure above, when production is 3 units with a price of $3, the producer surplus in this market equals

-In the above figure, 300,000 purses per month is

-In the figure above, what is the marginal social benefit of the 3,000,000th CD per month?

The market demand curve for iPads is the ________ of all the individual demand curves for iPads.

Moving down along the market demand curve for hot dogs, the

-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the ________.

The principle that states that we should strive to achieve the greatest happiness for the greatest number is called

The assertion that if resources are allocated efficiently, they also are allocated fairly is made by

-In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. The total deadweight loss would be

-In the above figure, suppose the quantity produced is 40. Then

Meat at the supermarket has contributed to increase in food prices in 2010, and high feed and fuel prices mean that steak will likely cost a lot more this fall. The price of feed has increased 50 percent and hay has doubled from two years ago. Based on this information, which of the following is NOT true in the market for beef?

Which of the following is inconsistent with Robert Nozick's view of fairness as expressed in his book Anarchy, State, and Utopia?

Overproduction compared to the efficient amount implies that for the last unit produced

If there are no external costs or benefits, no price or quantity regulations, no taxes or subsidies, and the good is not a public good or a common resource, then efficiency is

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

If the marginal social cost exceeds the marginal social benefit for the last pair of shoes produced, then the economy is producing more than the efficient amount.

Which of the following is TRUE?

-The figure above shows the market for milk. If one firm owns all the milk outlets in the city and sells 100 gallons of milk

The producer surplus from a good is equal to the