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

Ingrid has been waiting for the show "Mamma Mia!" to come to town.When it finally does come,ticket prices are $60.Ingrid's reservation price is $75.But when Ingrid tries to buy a ticket,they are sold out. Refer to the information above.The fact that Ingrid cannot buy a ticket to "Mamma Mia!" is evidence of:

One difference between the long run and the short run in a perfectly competitive industry is that:

Price ceilings above the equilibrium price result in:

Accounting profits are:

Chris was the business manager for a real estate firm earning an annual salary of $40,000.Then Chris decided to become a consultant.Chris hired an administrative assistant at $15,000 per year and rents office space (utilities included)for $3,000 per month.Chris earned $100,000 in total revenue the first year as a consultant. Chris's explicit annual cost is _____ and Chris's implicit cost is ______.

Market equilibrium is considered efficient because:

Which ordering best describes how a perfectly competitive industry would respond to a sudden increase in popularity of the product? The market demand function will shift to the right,causing the market:

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. Refer to the information given above.Pat's accounting profit is _______,and Pat's economic profit is _______.

Consumer surplus is the value of:

Some people have argued that the government should provide medical care to everyone.Under this system:

E-commerce and an internet presence are important to many firms,requiring employees with specialized skills that are in short supply.The invisible hand solves the employment problem by:

The following graphs depict a perfectly competitive firm and its market. Assume that all firms in this industry have identical cost functions. The long run equilibrium quantity in this industry is

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

If a firm is earning zero economic profits:

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

Which of the following describes a surplus-enhancing transaction?

Factors of production most likely to earn positive economic rent are:

The statement,"If a deal is too good to be true,it probably is not true" is most closely related to which principle?

Implicit costs:

The following graphs depict a perfectly competitive firm and its market. Assume that all firms in this industry have identical cost functions. Assume that the market is currently as shown in the graph on the left .What is true of the number of firms?