Question 1

The requirement that people in similar situations be treated similarly is called

Accepted Answer

A)  the big tradeoff. 
B)  the symmetry principle. 
C)  utilitarianism. 
D)  efficiency. 
A)  the big tradeoff. 
B)  the symmetry principle. 
C)  utilitarianism. 
D)  efficiency.

Question 2

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

Accepted Answer

A)  total consumer surplus is zero. 
B)  total producer surplus is zero. 
C)  the sum of consumer surplus and producer surplus is zero. 
D)  the sum of consumer surplus and producer surplus is maximized. 
A)  total consumer surplus is zero. 
B)  total producer surplus is zero. 
C)  the sum of consumer surplus and producer surplus is zero. 
D)  the sum of consumer surplus and producer surplus is maximized.

Question 3

-Jenn is willing to pay $75 for a purse and the purse's price is $60. What is Jenn's consumer surplus?

Accepted Answer

The consumer surplus equals the differen

Question 4

If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit of corn, then I. there is a deadweight loss.
II) more than the efficient quantity of corn is produced.

Accepted Answer

A)  Only I is correct. 
B)  Only II is correct. 
C)  Both I and II are correct. 
D)  Neither I nor II is correct. 
A)  Only I is correct. 
B)  Only II is correct. 
C)  Both I and II are correct. 
D)  Neither I nor II is correct.

Question 5

If there is an external cost from making paper, an unregulated competitive market produces

Accepted Answer

A)  less than the efficient quantity. 
B)  the efficient quantity. 
C)  more than the efficient quantity. 
D)  a quantity that could be greater than, the same as, or less than the efficient amount. 
A)  less than the efficient quantity. 
B)  the efficient quantity. 
C)  more than the efficient quantity. 
D)  a quantity that could be greater than, the same as, or less than the efficient amount.

Question 6

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market.  
-Using the table, what is the marginal social cost when the market quantity supplied is 750 slices of pizza per month?

Accepted Answer

A)  $3 
B)  $7 
C)  $9 
D)  $3.50 
A)  $3 
B)  $7 
C)  $9 
D)  $3.50

Question 7

Marginal cost is the

Accepted Answer

A)  extra benefit that people receive from producing one more unit of a good or service. 
B)  maximum amount consumers are willing to pay for one more unit of a good or service. 
C)  opportunity cost of producing one more unit of a good or service. 
D)  None of the above answers is correct. 
A)  extra benefit that people receive from producing one more unit of a good or service. 
B)  maximum amount consumers are willing to pay for one more unit of a good or service. 
C)  opportunity cost of producing one more unit of a good or service. 
D)  None of the above answers is correct.

Question 8

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.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 9

The pollution created when coal is burned by utilities to generate electricity is an example of ________.

Accepted Answer

A)  a marginal benefit to coal producers 
B)  a welfare cost 
C)  an external cost 
D)  a cost paid by the utilities 
A)  a marginal benefit to coal producers 
B)  a welfare cost 
C)  an external cost 
D)  a cost paid by the utilities

Question 10

-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 11

-The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________.

Accepted Answer

A)  $5.00 an hour 
B)  $2.50 an hour 
C)  $7.50 an hour 
D)  $0.50 a bagel 
A)  $5.00 an hour 
B)  $2.50 an hour 
C)  $7.50 an hour 
D)  $0.50 a bagel

Question 12

If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________.

Accepted Answer

A)  increase 
B)  decrease 
C)  equal the producer surplus if the market produces the efficient quantity of pizza 
D)  remain the same 
A)  increase 
B)  decrease 
C)  equal the producer surplus if the market produces the efficient quantity of pizza 
D)  remain the same

Question 13

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?

Accepted Answer

A)  The existence of many producers and sellers of doughnuts. 
B)  The existence of just one producer and seller of doughnuts. 
C)  Damage to the environment from the disposal of oil used to cook the doughnuts. 
D)  Both answers B and C are correct. 
A)  The existence of many producers and sellers of doughnuts. 
B)  The existence of just one producer and seller of doughnuts. 
C)  Damage to the environment from the disposal of oil used to cook the doughnuts. 
D)  Both answers B and C are correct.

Question 14

Competitive markets will generally produce

Accepted Answer

A)  too much of a public good. 
B)  too little of a public good. 
C)  the efficient amount of a public good. 
D)  the efficient amount of a public good in the short run, but not in the long run. 
A)  too much of a public good. 
B)  too little of a public good. 
C)  the efficient amount of a public good. 
D)  the efficient amount of a public good in the short run, but not in the long run.

Question 15

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 16

Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when

Accepted Answer

A)  it can't produce any more bikes unless it gives up clothing. 
B)  it produces equal amount of bikes and clothes. 
C)  the marginal social benefit of producing a bike equals the marginal social cost of producing a bike. 
D)  the prices charged for the goods are as low as possible. 
A)  it can't produce any more bikes unless it gives up clothing. 
B)  it produces equal amount of bikes and clothes. 
C)  the marginal social benefit of producing a bike equals the marginal social cost of producing a bike. 
D)  the prices charged for the goods are as low as possible.

Question 17

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

Accepted Answer

A)  the efficient quantity is being produced and consumed. 
B)  200 dozen doughnuts are produced and consumed each day. 
C)  an increase in production and consumption would increase efficiency. 
D)  Both answers A and B are correct. 
A)  the efficient quantity is being produced and consumed. 
B)  200 dozen doughnuts are produced and consumed each day. 
C)  an increase in production and consumption would increase efficiency. 
D)  Both answers A and B are correct.

Question 18

Utilitarianism is the idea that only

Accepted Answer

A)  competition brings efficiency. 
B)  efficiency brings equality. 
C)  income equality is fair. 
D)  efficiency is fair. 
A)  competition brings efficiency. 
B)  efficiency brings equality. 
C)  income equality is fair. 
D)  efficiency is fair.

Question 19

-The figure above shows the market for milk. If the efficient quantity of milk is produced, the producer surplus is

Accepted Answer

A)  $100. 
B)  $400. 
C)  $200. 
D)  $600. 
A)  $100. 
B)  $400. 
C)  $200. 
D)  $600.

Question 20

-In the above figure, what is the efficient quantity of pretzels to produce each day?

Accepted Answer

A)  one hundred 
B)  two hundred 
C)  three hundred 
D)  four hundred 
A)  one hundred 
B)  two hundred 
C)  three hundred 
D)  four hundred

The requirement that people in similar situations be treated similarly is called

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

-Jenn is willing to pay $75 for a purse and the purse's price is $60. What is Jenn's consumer surplus?

If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit of corn, then I. there is a deadweight loss. II) more than the efficient quantity of corn is produced.

If there is an external cost from making paper, an unregulated competitive market produces

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market. -Using the table, what is the marginal social cost when the market quantity supplied is 750 slices of pizza per month?

Marginal cost is the

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.

The pollution created when coal is burned by utilities to generate electricity is an example of ________.

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

-The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________.

If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________.

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?

Competitive markets will generally produce

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

Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when

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

Utilitarianism is the idea that only

-The figure above shows the market for milk. If the efficient quantity of milk is produced, the producer surplus is

-In the above figure, what is the efficient quantity of pretzels to produce each day?

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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 5: Efficiency and Equity

The requirement that people in similar situations be treated similarly is called

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

-Jenn is willing to pay $75 for a purse and the purse's price is $60. What is Jenn's consumer surplus?

If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit of corn, then I. there is a deadweight loss. II) more than the efficient quantity of corn is produced.

If there is an external cost from making paper, an unregulated competitive market produces

The table below shows the supply schedules for Fred's Pizza and Johnny's Pizza, the only sellers of pizza in the market. -Using the table, what is the marginal social cost when the market quantity supplied is 750 slices of pizza per month?

Marginal cost is the

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.

The pollution created when coal is burned by utilities to generate electricity is an example of ________.

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

-The figure illustrates the market for bagels. Initially the market is in equilibrium, Then the number of bagels produced is cut from 20 to 10 an hour and the price rises to $2.00 per bagel. Consumer surplus decreases by ________.

If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________.

-The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?

Competitive markets will generally produce

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

Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when

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

Utilitarianism is the idea that only

-The figure above shows the market for milk. If the efficient quantity of milk is produced, the producer surplus is

-In the above figure, what is the efficient quantity of pretzels to produce each day?

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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters