Question 1

Consumers seek to

Accepted Answer

A)  maximize profits. 
B)  maximize expected consumer surplus. 
C)  minimize expenditures. 
D)  maximize choice. 
A)  maximize profits. 
B)  maximize expected consumer surplus. 
C)  minimize expenditures. 
D)  maximize choice.

Question 2

-The above figure shows the market for rice in Japan where price is expressed in dollars.S represents the domestic supply curve,and the horizontal line at P = 1 represents the world supply curve.Suppose a free market exists.The smallest tariff necessary to completely eliminate imported rice is

Accepted Answer

A)  $0.50 per unit. 
B)  $1.00 per unit. 
C)  $1.50 per unit. 
D)  $2.00 per unit. 
A)  $0.50 per unit. 
B)  $1.00 per unit. 
C)  $1.50 per unit. 
D)  $2.00 per unit.

Question 3

The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,then consumer surplus will most likely

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  There is not enough information to answer. 
A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  There is not enough information to answer.

Question 4

What is one reason it might be difficult to dissuade people from pirating music off the Internet?

Accepted Answer

A)  Consumer surplus is very high when music is pirated. 
B)  In general, consumers get a rush from "stealing." 
C)  Consumers mistakenly believe that the Internet is public domain. 
D)  Producer surplus is very low when music is pirated. 
A)  Consumer surplus is very high when music is pirated. 
B)  In general, consumers get a rush from "stealing." 
C)  Consumers mistakenly believe that the Internet is public domain. 
D)  Producer surplus is very low when music is pirated.

Question 5

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution.Suppose there is a decrease in the market price of this good.Then

Accepted Answer

A)  both her utility and her consumer surplus will increase. 
B)  her consumer surplus will increase, but her utility will remain the same. 
C)  her utility will increase, but her consumer surplus will remain the same. 
D)  her consumer surplus will increase, but the change in her utility is unknown without more information. 
A)  both her utility and her consumer surplus will increase. 
B)  her consumer surplus will increase, but her utility will remain the same. 
C)  her utility will increase, but her consumer surplus will remain the same. 
D)  her consumer surplus will increase, but the change in her utility is unknown without more information.

Question 6

Mister Jones was selling his house.The asking price was $220,000,and Jones decided he would take no less than $200,000.After some negotiation,Mister Smith purchased the house for $205,000.Jones' producer surplus is

Accepted Answer

A)  $5,000. 
B)  $15,000. 
C)  $20,000. 
D)  not able to be calculated from the information given. 
A)  $5,000. 
B)  $15,000. 
C)  $20,000. 
D)  not able to be calculated from the information given.

Consumers seek to

-The above figure shows the market for rice in Japan where price is expressed in dollars.S represents the domestic supply curve,and the horizontal line at P = 1 represents the world supply curve.Suppose a free market exists.The smallest tariff necessary to completely eliminate imported rice is

The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,then consumer surplus will most likely

What is one reason it might be difficult to dissuade people from pirating music off the Internet?

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution.Suppose there is a decrease in the market price of this good.Then

Mister Jones was selling his house.The asking price was $220,000,and Jones decided he would take no less than $200,000.After some negotiation,Mister Smith purchased the house for $205,000.Jones' producer surplus is

Introduction

Supply and Demand

Applying the Supply and Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 9: Applying the Competitive Model

Consumers seek to

-The above figure shows the market for rice in Japan where price is expressed in dollars.S represents the domestic supply curve,and the horizontal line at P = 1 represents the world supply curve.Suppose a free market exists.The smallest tariff necessary to completely eliminate imported rice is

The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,then consumer surplus will most likely

What is one reason it might be difficult to dissuade people from pirating music off the Internet?

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution.Suppose there is a decrease in the market price of this good.Then

Mister Jones was selling his house.The asking price was $220,000,and Jones decided he would take no less than $200,000.After some negotiation,Mister Smith purchased the house for $205,000.Jones' producer surplus is

Introduction

Supply and Demand

Applying the Supply and Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters