Question 1

Consumer surplus is

Accepted Answer

A)  the difference between the maximum a person is willing to pay and current market price. 
B)  the difference between current market price and full costs of production for the firm. 
C)  the difference between the maximum a person is willing to pay and full costs of productions for the firm. 
D)  current market price. 
A)  the difference between the maximum a person is willing to pay and current market price. 
B)  the difference between current market price and full costs of production for the firm. 
C)  the difference between the maximum a person is willing to pay and full costs of productions for the firm. 
D)  current market price.

Question 2

Refer to the information provided in Figure 4.3 below to answer the questions that follow.   Figure 4.3
-Refer to Figure 4.3. At an effective price ceiling for pencils,

Accepted Answer

A)  quantity demanded is greater than quantity supplied. 
B)  quantity demanded is less than quantity supplied. 
C)  quantity demanded is equal to quantity supplied. 
D)  price is above equilibrium. 
A)  quantity demanded is greater than quantity supplied. 
B)  quantity demanded is less than quantity supplied. 
C)  quantity demanded is equal to quantity supplied. 
D)  price is above equilibrium.

Question 3

Refer to the information provided in Figure 4.3 below to answer the questions that follow.   Figure 4.3
-Refer to Figure 4.3. If the government will not allow the retailers to charge more than $0.40 for a pencil, which of the following will happen?

Accepted Answer

A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $0.40. 
B)  Supply must eventually increase so that the market will come into equilibrium at a price of $0.40. 
C)  A nonprice rationing system such as queuing must be used to ration the available supply of pencils. 
D)  The market will be in equilibrium at a price of $0.40. 
A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $0.40. 
B)  Supply must eventually increase so that the market will come into equilibrium at a price of $0.40. 
C)  A nonprice rationing system such as queuing must be used to ration the available supply of pencils. 
D)  The market will be in equilibrium at a price of $0.40.

Question 4

Refer to the information provided in Figure 4.4 below to answer the questions that follow.   Figure 4.4
-Refer to Figure 4.4. If a $25 per barrel tax is levied on imported oil, the United States will

Accepted Answer

A)  import 2 million barrels of oil per day. 
B)  import 6 million barrels of oil per day. 
C)  import 10 million barrels of oil per day. 
D)  export 10 million barrels of oil per day. 
A)  import 2 million barrels of oil per day. 
B)  import 6 million barrels of oil per day. 
C)  import 10 million barrels of oil per day. 
D)  export 10 million barrels of oil per day.

Question 5

With price rationing, those who are both able and willing to pay for a product get it.

Accepted Answer

A) True 
 B)False

Question 6

Refer to the information provided in Figure 4.4 below to answer the questions that follow.   Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil,

Accepted Answer

A)  the quantity demanded of oil will be reduced by 4 million barrels per day. 
B)  the quantity of oil supplied by U.S. firms will increase by 8 million barrels per day. 
C)  U.S. imports of oil will increase by 4 million barrels per day. 
D)  the price of oil in the U.S. will increase to $150 per barrel. 
A)  the quantity demanded of oil will be reduced by 4 million barrels per day. 
B)  the quantity of oil supplied by U.S. firms will increase by 8 million barrels per day. 
C)  U.S. imports of oil will increase by 4 million barrels per day. 
D)  the price of oil in the U.S. will increase to $150 per barrel.

Consumer surplus is

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. At an effective price ceiling for pencils,

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. If the government will not allow the retailers to charge more than $0.40 for a pencil, which of the following will happen?

Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. If a $25 per barrel tax is levied on imported oil, the United States will

With price rationing, those who are both able and willing to pay for a product get it.

Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil,

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

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Exam 4: Demand and Supply Applications

Consumer surplus is

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. At an effective price ceiling for pencils,

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. If the government will not allow the retailers to charge more than $0.40 for a pencil, which of the following will happen?

Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. If a $25 per barrel tax is levied on imported oil, the United States will

With price rationing, those who are both able and willing to pay for a product get it.

Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4 -Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil,

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Social Choice

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: The Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing and Transitional Economies

Filters