Exam 7: Efficiency, Exchange, and the Invisible Hand in Action

Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will and the market price will .

(Multiple Choice)

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Question 81

Suppose a market is in equilibrium. The area below the demand curve and above the market price is:

(Multiple Choice)

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Question 82

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then consumer surplus will be ______ per day.

(Multiple Choice)

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Question 83

Refer to the figure below. When the market is unregulated, producer surplus is represented by the area:

(Multiple Choice)

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Question 84

Refer to the figure below. If a price ceiling were imposed at point G, then excess demand would be measured by the distance between points:

(Multiple Choice)

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Question 85

Which of the following statements about implicit costs is true?

(Multiple Choice)

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Question 86

Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:

(Multiple Choice)

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Question 87

Barriers to entry are forces that:

(Multiple Choice)

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Question 88

If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:

(Multiple Choice)

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Question 89

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Pat's explicit costs are , and Pat's implicit costs are .

(Multiple Choice)

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Question 90

Which of the following would not be included in the calculation of accounting profit?

(Multiple Choice)

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Question 91

Accounting profit minus implicit costs equals:

(Multiple Choice)

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Question 92

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ______ per day.

(Multiple Choice)

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Question 93

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then producer surplus will be ______ per day.

(Multiple Choice)

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Question 94

Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:

(Multiple Choice)

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Question 95

Accounting profit is equal to:

(Multiple Choice)

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Question 96

Refer to the figure below. If this market is unregulated, total economic surplus is:

(Multiple Choice)

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Question 97

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then relative to before the subsidy, total economic surplus will by per day.

(Multiple Choice)

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Question 98

The figure below shows the supply and demand curves for oranges in Smallville. At the price of $4 per pound, sellers offer pounds of oranges per day, and buyers want to purchase pounds of oranges a day.

(Multiple Choice)

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Question 99

Refer to the figure below. If this market is unregulated, the economic surplus received by producers is:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 151

Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will and the market price will .

Suppose a market is in equilibrium. The area below the demand curve and above the market price is:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then consumer surplus will be ______ per day.

Refer to the figure below. When the market is unregulated, producer surplus is represented by the area:

Refer to the figure below. If a price ceiling were imposed at point G, then excess demand would be measured by the distance between points:

Which of the following statements about implicit costs is true?

Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:

Barriers to entry are forces that:

If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:

Which of the following would not be included in the calculation of accounting profit?

Accounting profit minus implicit costs equals:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ______ per day.

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then producer surplus will be ______ per day.

Accounting profit is equal to:

Refer to the figure below. If this market is unregulated, total economic surplus is:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then relative to before the subsidy, total economic surplus will by per day.

The figure below shows the supply and demand curves for oranges in Smallville. At the price of $4 per pound, sellers offer pounds of oranges per day, and buyers want to purchase pounds of oranges a day.

Refer to the figure below. If this market is unregulated, the economic surplus received by producers is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

Exam 7: Efficiency, Exchange, and the Invisible Hand in Action

Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will ______ and the market price will ______.

Suppose a market is in equilibrium. The area below the demand curve and above the market price is:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then consumer surplus will be ______ per day.

Refer to the figure below. When the market is unregulated, producer surplus is represented by the area:

Refer to the figure below. If a price ceiling were imposed at point G, then excess demand would be measured by the distance between points:

Which of the following statements about implicit costs is true?

Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:

Barriers to entry are forces that:

If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:

Which of the following would not be included in the calculation of accounting profit?

Accounting profit minus implicit costs equals:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ______ per day.

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then producer surplus will be ______ per day.

Accounting profit is equal to:

Refer to the figure below. If this market is unregulated, total economic surplus is:

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then relative to before the subsidy, total economic surplus will ______ by ______ per day.

The figure below shows the supply and demand curves for oranges in Smallville. At the price of $4 per pound, sellers offer ______ pounds of oranges per day, and buyers want to purchase ______ pounds of oranges a day.

Refer to the figure below. If this market is unregulated, the economic surplus received by producers is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Filters

Suppose all firms in a perfectly competitive industry are earning an economic profit. One would expect that, over time, the number of firms in the industry will and the market price will .

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. If the government provides a subsidy of $500 per ton, then relative to before the subsidy, total economic surplus will by per day.

The figure below shows the supply and demand curves for oranges in Smallville. At the price of $4 per pound, sellers offer pounds of oranges per day, and buyers want to purchase pounds of oranges a day.