Filters
Question type
Study Flashcards

You are offered a free ticket to see the Chicago Cubs play the Chicago White Sox at Wrigley Field.Assume the ticket has no resale value.Willie Nelson is performing on the same night,and his concert is your next-best alternative activity.Tickets to see Willie Nelson cost $40.On any given day,you would be willing to pay up to $50 to see and hear Willie Nelson perform.Assume there are no other costs of seeing either event.Based on this information,at a minimum,how much would you have to value seeing the Cubs play the White Sox to accept the ticket and go to the game?


A) $0
B) $10
C) $40
D) $50

Correct Answer

verifed

verified

Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. -Refer to Table 7-2.If the market price is $5.50,the consumer surplus in the market will be A) $3.00. B) $4.50. C) $15.50. D) $21.00. -Refer to Table 7-2.If the market price is $5.50,the consumer surplus in the market will be


A) $3.00.
B) $4.50.
C) $15.50.
D) $21.00.

Correct Answer

verifed

verified

Table 7-1 Table 7-1 -Refer to Table 7-1.If price of the product is $30,then the total consumer surplus is A) $-10. B) $-6. C) $20. D) $30. -Refer to Table 7-1.If price of the product is $30,then the total consumer surplus is


A) $-10.
B) $-6.
C) $20.
D) $30.

Correct Answer

verifed

verified

Figure 7-16 Figure 7-16 -Refer to Figure 7-16.At equilibrium,consumer surplus is represented by the area A) A. B) A+B+C. C) D+H+F. D) A+B+C+D+H+F. -Refer to Figure 7-16.At equilibrium,consumer surplus is represented by the area


A) A.
B) A+B+C.
C) D+H+F.
D) A+B+C+D+H+F.

Correct Answer

verifed

verified

Total surplus is


A) equal to producer surplus plus consumer surplus.
B) equal to the total cost to sellers minus the total value to buyers.
C) equal to consumers' willingness to pay plus producers' cost.
D) greater than the sum of consumer surplus plus producer surplus.

Correct Answer

verifed

verified

PlayStations and PlaySation games are complementary goods.A technological advance in the production of PlayStations will


A) increase consumer surplus in the market for PlayStations and decrease producer surplus in the market for PlayStation games.
B) increase consumer surplus in the market for PlayStations and increase producer surplus in the market for PlayStation games.
C) decrease consumer surplus in the market for PlayStations and increase producer surplus in the market for PlayStation games.
D) decrease consumer surplus in the market for PlayStations and decrease producer surplus in the market for PlayStation games.

Correct Answer

verifed

verified

Figure 7-10 Figure 7-10 -Refer to Figure 7-10.If the government imposes a price ceiling of $70 in this market,then the new producer surplus will be A) $50. B) $100. C) $175. D) $350. -Refer to Figure 7-10.If the government imposes a price ceiling of $70 in this market,then the new producer surplus will be


A) $50.
B) $100.
C) $175.
D) $350.

Correct Answer

verifed

verified

If the government imposes a binding price ceiling in a market,then the producer surplus in that market will increase.

Correct Answer

verifed

verified

Donald produces nails at a cost of $200 per ton.If he sells the nails for $350 per ton,his producer surplus per ton is


A) $150.
B) $200.
C) $350.
D) $550.

Correct Answer

verifed

verified

Michael values a stainless steel refrigerator for his new house at $3,500,but he succeeds in buying one for $3,000.Michael's consumer surplus is


A) $500.
B) $3,000.
C) $3,500.
D) $6,500.

Correct Answer

verifed

verified

Figure 7-15 Figure 7-15 -Refer to Figure 7-15.Assume demand increases and as a result,equilibrium price increases to $22 and equilibrium quantity increases to 110.The increase in producer surplus to producers already in the market would be A) $90. B) $210. C) $360. D) $480. -Refer to Figure 7-15.Assume demand increases and as a result,equilibrium price increases to $22 and equilibrium quantity increases to 110.The increase in producer surplus to producers already in the market would be


A) $90.
B) $210.
C) $360.
D) $480.

Correct Answer

verifed

verified

Figure 7-9 Figure 7-9 -Refer to Figure 7-9.If the equilibrium price is $200,what is the producer surplus? A) $625 B) $3,750 C) $10,000 D) $20,000 -Refer to Figure 7-9.If the equilibrium price is $200,what is the producer surplus?


A) $625
B) $3,750
C) $10,000
D) $20,000

Correct Answer

verifed

verified

Connie can clean windows in large office buildings at a cost of $1 per window.The market price for window-cleaning services is $3 per window.If Connie cleans 100 windows,her producer surplus is $200.

Correct Answer

verifed

verified

Figure 7-1 Figure 7-1 -Refer to Figure 7-1.When the price rises from P1 to P2,consumer surplus A) increases by an amount equal to A. B) decreases by an amount equal to B+C. C) increases by an amount equal to B+C. D) decreases by an amount equal to C. -Refer to Figure 7-1.When the price rises from P1 to P2,consumer surplus


A) increases by an amount equal to A.
B) decreases by an amount equal to B+C.
C) increases by an amount equal to B+C.
D) decreases by an amount equal to C.

Correct Answer

verifed

verified

If the cost of producing sofas decreases,then consumer surplus in the sofa market will


A) increase.
B) decrease.
C) remain constant.
D) increase for some buyers and decrease for other buyers.

Correct Answer

verifed

verified

Figure 7-11 Figure 7-11 -Refer to Figure 7-6.When the price falls from P2 to P1,which of the following would not be true? A) The sellers who still sell the good are worse off because they now receive less. B) Some sellers leave the market because they are not willing to sell the good at the lower price. C) The total cost of what is now sold by sellers is actually higher than it was before the decrease in the price. D) Producer surplus would fall by area A + B. -Refer to Figure 7-6.When the price falls from P2 to P1,which of the following would not be true?


A) The sellers who still sell the good are worse off because they now receive less.
B) Some sellers leave the market because they are not willing to sell the good at the lower price.
C) The total cost of what is now sold by sellers is actually higher than it was before the decrease in the price.
D) Producer surplus would fall by area A + B.

Correct Answer

verifed

verified

Figure 7-15 Figure 7-15 -Refer to Figure 7-15.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by A) $120. B) $360. C) $480. D) $600. -Refer to Figure 7-15.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by


A) $120.
B) $360.
C) $480.
D) $600.

Correct Answer

verifed

verified

Figure 7-11 Figure 7-11 -Refer to Figure 7-11.Area B represents A) the combined profits of all producers when the price is P2. B) the increase in producer surplus to all producers as the result of an increase in the price from P1 to P2. C) producer surplus to new producers entering the market as the result of an increase in the price from P1 to P2. D) that portion of the increase in producer surplus that is offset by a loss in consumer surplus when the price increases from P1 to P2. -Refer to Figure 7-11.Area B represents


A) the combined profits of all producers when the price is P2.
B) the increase in producer surplus to all producers as the result of an increase in the price from P1 to P2.
C) producer surplus to new producers entering the market as the result of an increase in the price from P1 to P2.
D) that portion of the increase in producer surplus that is offset by a loss in consumer surplus when the price increases from P1 to P2.

Correct Answer

verifed

verified

Figure 7-8 Figure 7-8 -Refer to Figure 7-8.If the supply curve is S',the demand curve is D,and the equilibrium price is $150,what is the producer surplus? A) $625 B) $1,250 C) $2,500 D) $5,000 -Refer to Figure 7-8.If the supply curve is S',the demand curve is D,and the equilibrium price is $150,what is the producer surplus?


A) $625
B) $1,250
C) $2,500
D) $5,000

Correct Answer

verifed

verified

A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it


A) maximizes both the total revenue for firms and the quantity supplied of the product.
B) maximizes the combined welfare of buyers and sellers.
C) minimizes costs and maximizes output.
D) minimizes the level of welfare payments.

Correct Answer

verifed

verified

Showing 201 - 220 of 363

Related Exams

Exam 1

Ten Principles of Economics

281 Questions

Exam 2

Thinking Like an Economist

451 Questions

Exam 3

Interdependence and the Gains From Trade

353 Questions

Exam 4

The Market Forces of Supply and Demand

467 Questions

Exam 5

Elasticity and Its Application

409 Questions

Exam 6

Supply, Demand, and Government Policies

459 Questions

Exam 8

Application: The Costs of Taxation

353 Questions

Exam 9

Application: International Trade

333 Questions

Exam 10

Externalities

352 Questions

Exam 11

Public Goods and Common Resources

270 Questions

Exam 12

The Design of the Tax System

397 Questions

Exam 13

The Costs of Production

434 Questions

Exam 14

Firms in Competitive Markets

381 Questions

Exam 15

Monopoly

427 Questions

Exam 16

Monopolistic Competition

416 Questions

Exam 17

Oligopoly

325 Questions

Exam 18

The Markets for the Factors of Production

361 Questions

Exam 19

Earnings and Discrimination

335 Questions

Exam 20

Income Inequality and Poverty

312 Questions

Exam 21

The Theory of Consumer Choice

354 Questions

Exam 22

Frontiers of Microeconomics

262 Questions

Exam 23

Measuring a Nations Income

343 Questions

Exam 24

Measuring the Cost of Living

358 Questions

Exam 25

Production and Growth

335 Questions

Exam 26

Saving, investment, and the Financial System

381 Questions

Exam 27

The Basic Tools of Finance

336 Questions

Exam 28

Unemployment

533 Questions

Exam 29

The Monetary System

366 Questions

Exam 30

Money Growth and Inflation

312 Questions

Exam 31

Open-Economy Macroeconomics: Basic Concepts

346 Questions

Exam 32

A Macroeconomic Theory of the Open Economy

300 Questions

Exam 33

Aggregate Demand and Aggregate Supply

386 Questions

Exam 34

The Influence of Monetary and Fiscal Policy on Aggregate Demand

334 Questions

Exam 35

The Short-Run Trade-Off Between Inflation and Unemployment

306 Questions

Exam 36

Five Debates Over Macroeconomic Policy

179 Questions

Show Answer