Question 1

Obstacles in achieving efficiency in a market include

Accepted Answer

A)  public goods. 
B)  the presence of an external cost or benefit. 
C)  competition. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  public goods. 
B)  the presence of an external cost or benefit. 
C)  competition. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 2

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

Accepted Answer

The supply curve is the same as the marg

Question 3

Compare and contrast production efficiency and allocative efficiency.

Accepted Answer

Production efficiency means that we are

Question 4

A marginal benefit curve

Accepted Answer

A)  is the same as a demand curve. 
B)  is the same as a supply curve. 
C)  slopes upwards. 
D)  is a vertical line at the efficient quantity. 
E)  is U-shaped. 
A)  is the same as a demand curve. 
B)  is the same as a supply curve. 
C)  slopes upwards. 
D)  is a vertical line at the efficient quantity. 
E)  is U-shaped.

Question 5

What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?

Accepted Answer

A)  tax 
B)  subsidy 
C)  price floor 
D)  deadweight loss 
E)  quantity restriction 
A)  tax 
B)  subsidy 
C)  price floor 
D)  deadweight loss 
E)  quantity restriction

Question 6

Often politicians assert that a price,such as the price of gasoline or the rent for an apartment,is too high and that it is unfair for these prices to be so high.If these products are traded in competitive markets,what fairness rule are politicians using? Why?

Accepted Answer

The fairness rule is one of "It's not fa

Question 7

-The figure above represents the competitive market for slices of key lime pie.When 60 slices are produced,the marginal cost

Accepted Answer

A)  exceeds the marginal benefit. 
B)  is less than the marginal benefit. 
C)  equals the marginal benefit. 
D)  is not defined. 
E)  equals the deadweight loss on the 60th slice. 
A)  exceeds the marginal benefit. 
B)  is less than the marginal benefit. 
C)  equals the marginal benefit. 
D)  is not defined. 
E)  equals the deadweight loss on the 60th slice.

Question 8

The marginal cost of a good or service

Accepted Answer

A)  can be calculated from the marginal benefit of that good or service. 
B)  decreases as more of the good or service is produced. 
C)  can be derived from the production possibilities frontier. 
D)  graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping. 
E)  None of the above answers is correct. 
A)  can be calculated from the marginal benefit of that good or service. 
B)  decreases as more of the good or service is produced. 
C)  can be derived from the production possibilities frontier. 
D)  graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping. 
E)  None of the above answers is correct.

Question 9

Which of the following situations describing a resource allocation method most resembles the force method?

Accepted Answer

A)  Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. 
B)  Lattes are sold at Starbucks. 
C)  Food from the Weld County Food Bank is distributed to families in need. 
D)  Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. 
E)  Jose works at Intel. His manager tells him what work needs to be completed each month. 
A)  Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. 
B)  Lattes are sold at Starbucks. 
C)  Food from the Weld County Food Bank is distributed to families in need. 
D)  Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. 
E)  Jose works at Intel. His manager tells him what work needs to be completed each month.

Question 10

Jason hires Maria to tutor him in economics.Jason is willing to pay $30 for the first hour of tutoring,$25 for the second,$20 for the third,$15 for the fourth,and $10 for the fifth.Maria has an opportunity cost per hour of $6 for the first,$9 for the second,$12 for the third,$15 for the fourth,and $18 for the fifth.What will be the equilibrium quantity of hours tutored and the equilibrium price? Explain why this quantity and price is the equilibrium.What is Jason's consumer surplus and what is Maria's producer surplus?

Accepted Answer

The equilibrium quantity will be 4 hours

Question 11

Jason needs help getting ready for the next test in his economics course and would like to hire Maria,an economics tutor to help him.Jason is willing to pay $30 for the first hour of tutoring,$25 for the second,$20 for the third,$15 for the fourth,and $10 for the fifth.The equilibrium price for tutoring is $15 per hour.For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus,if any,from the tutoring? What is Maria's consumer surplus from the tutoring?

Accepted Answer

Jason will hire Maria for 4 hours of tut

Question 12

What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?

Accepted Answer

The general approach to fairness that ar

Question 13

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Accepted Answer

A)  producer surplus. 
B)  equilibrium. 
C)  marginal cost. 
D)  total surplus. 
E)  consumer surplus. 
A)  producer surplus. 
B)  equilibrium. 
C)  marginal cost. 
D)  total surplus. 
E)  consumer surplus.

Question 14

Draw and describe a marginal cost curve for slices of pizza where the opportunity cost of producing a slice of pizza is a taco.

Accepted Answer

@#IMG-DLM& A marginal cost curve is drawn as an up

Question 15

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

Accepted Answer

A)  0 pizzas 
B)  10,000 pizzas 
C)  20,000 pizzas 
D)  30,000 pizzas 
E)  The efficient quantity cannot be determine without more information. 
A)  0 pizzas 
B)  10,000 pizzas 
C)  20,000 pizzas 
D)  30,000 pizzas 
E)  The efficient quantity cannot be determine without more information.

Question 16

To achieve allocative efficiency,an economy

Accepted Answer

A)  must produce on its PPF. 
B)  does not necessarily need to be production efficient. 
C)  must have increases in technology. 
D)  might leave some resources unemployed. 
E)  can produce either on or within its PPF. 
A)  must produce on its PPF. 
B)  does not necessarily need to be production efficient. 
C)  must have increases in technology. 
D)  might leave some resources unemployed. 
E)  can produce either on or within its PPF.

Question 17

Marginal benefit is the benefit that a person receives from consuming

Accepted Answer

A)  a good or service until the person has grown tired of it. 
B)  only goods and services that are free. 
C)  one more unit of a good or service. 
D)  all of the possible units of a good or service that can be consumed. 
E)  one more unit of a good and is equal to the cost of producing the unit of the good. 
A)  a good or service until the person has grown tired of it. 
B)  only goods and services that are free. 
C)  one more unit of a good or service. 
D)  all of the possible units of a good or service that can be consumed. 
E)  one more unit of a good and is equal to the cost of producing the unit of the good.

Question 18

What must be true for a producer to obtain a producer surplus from the sale of a unit of a good?

Accepted Answer

The price must be gr

Question 19

Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50.What is the marginal benefit Samantha gained from the hamburger?

Accepted Answer

A)  $2.50 
B)  $7.50 
C)  $10.00 
D)  $12.50 
E)  None of the above answers is correct. 
A)  $2.50 
B)  $7.50 
C)  $10.00 
D)  $12.50 
E)  None of the above answers is correct.

Question 20

Marginal benefit curves

Accepted Answer

A)  have positive slopes. 
B)  have negative slopes. 
C)  are horizontal lines. 
D)  are vertical lines. 
E)  are upside-down U-shaped curves. 
A)  have positive slopes. 
B)  have negative slopes. 
C)  are horizontal lines. 
D)  are vertical lines. 
E)  are upside-down U-shaped curves.

Obstacles in achieving efficiency in a market include

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

Compare and contrast production efficiency and allocative efficiency.

A marginal benefit curve

What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?

Often politicians assert that a price,such as the price of gasoline or the rent for an apartment,is too high and that it is unfair for these prices to be so high.If these products are traded in competitive markets,what fairness rule are politicians using? Why?

-The figure above represents the competitive market for slices of key lime pie.When 60 slices are produced,the marginal cost

The marginal cost of a good or service

Which of the following situations describing a resource allocation method most resembles the force method?

What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Draw and describe a marginal cost curve for slices of pizza where the opportunity cost of producing a slice of pizza is a taco.

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

To achieve allocative efficiency,an economy

Marginal benefit is the benefit that a person receives from consuming

What must be true for a producer to obtain a producer surplus from the sale of a unit of a good?

Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50.What is the marginal benefit Samantha gained from the hamburger?

Marginal benefit curves

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 6: Efficiency and Fairness of Markets

Obstacles in achieving efficiency in a market include

The supply curve is the same as another curve.What other curve is the same as the supply curve? Why are the curves the same?

Compare and contrast production efficiency and allocative efficiency.

A marginal benefit curve

What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?

Often politicians assert that a price,such as the price of gasoline or the rent for an apartment,is too high and that it is unfair for these prices to be so high.If these products are traded in competitive markets,what fairness rule are politicians using? Why?

-The figure above represents the competitive market for slices of key lime pie.When 60 slices are produced,the marginal cost

The marginal cost of a good or service

Which of the following situations describing a resource allocation method most resembles the force method?

What approach to fairness argues in favor of government policies that redistribute income so that there is more equality of income?

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Draw and describe a marginal cost curve for slices of pizza where the opportunity cost of producing a slice of pizza is a taco.

-The figure above shows the marginal benefit and marginal cost curves for pizza.In the figure,what is the efficient quantity of pizza?

To achieve allocative efficiency,an economy

Marginal benefit is the benefit that a person receives from consuming

What must be true for a producer to obtain a producer surplus from the sale of a unit of a good?

Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50.What is the marginal benefit Samantha gained from the hamburger?

Marginal benefit curves

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters