Filters
Question type
Study Flashcards

Assume the market depicted in the graph is in equilibrium. What is total surplus? A) $30 B) $20 C) $50 D) $60 Assume the market depicted in the graph is in equilibrium. What is total surplus?


A) $30
B) $20
C) $50
D) $60

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S<sub>1</sub>) . Total surplus is: A) greater than it is when the market is in equilibrium at D and S<sub>2</sub>. B) less than it is when the market is in equilibrium at D and S<sub>2</sub>. C) the same as it is when market is in equilibrium at D and S<sub>2</sub>. D) zero. Assume the market depicted in the graph is in equilibrium at demand (D) and supply (S1) . Total surplus is:


A) greater than it is when the market is in equilibrium at D and S2.
B) less than it is when the market is in equilibrium at D and S2.
C) the same as it is when market is in equilibrium at D and S2.
D) zero.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina considers herself a grill-master, and finds a grill a necessity, so she is willing to pay $400 for a grill. Javier is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Kamal wants to impress his friends with his vegetable grilling skills and is willing to pay $320 for a grill. Lina loves grilled shrimp and thinks it might be cheaper in the long run if she grills her own shrimp instead of eating out at a restaurant, so she is willing to pay $200 for a grill.If the market price of grills increases from $310 to $350:


A) total consumer surplus would fall by $120.
B) total consumer surplus would fall by $90.
C) Kamal and Javier would experience a decrease in consumer surplus, but Martina's consumer surplus would rise.
D) Kamal would experience a decrease in consumer surplus, but Martina and Javier would experience a rise in consumer surplus.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot could offer a hammer for a minimum of $7. Lace Hardware could offer a hammer for a minimum of $10. Bob's Hardware could offer a hammer for a minimum of $13.If the market price of hammers increased from $8 to $11, total producer surplus would:


A) increase to $5.
B) decrease to $2.
C) increase to $17.
D) decrease to $7.

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

When a perfectly competitive, well-functioning market is in equilibrium:


A) consumer surplus is minimized.
B) producer surplus is minimized.
C) total surplus is maximized.
D) total surplus is zero.

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

In a well-functioning competitive market, total surplus:


A) can never be negative.
B) is always zero if the market is efficient.
C) can be negative if the market is not in equilibrium.
D) is greater than the sum of consumer and producer surplus.

E) B) and D)
F) A) and D)

Correct Answer

verifed

verified

The willingness to pay of buyers in a market:


A) is represented by the demand curve.
B) is represented by the supply curve.
C) explains why the demand curve is bowed-out.
D) explains why the demand curve is bowed-in.

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

Efficient markets:


A) maximize total surplus.
B) can occur without a central planner.
C) occur when a perfectly competitive, well-functioning market is in equilibrium.
D) All of these are correct.

E) A) and B)
F) B) and C)

Correct Answer

verifed

verified

Assume the market depicted in the graph is in equilibrium. What is producer surplus? A) $10 B) $6 C) $2 D) $20 Assume the market depicted in the graph is in equilibrium. What is producer surplus?


A) $10
B) $6
C) $2
D) $20

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Suppose Advik's willingness to pay for a cup of coffee is $1, which is equal to its price. Which of the following statements is true?


A) Advik is indifferent about purchasing a cup of coffee.
B) Advik will get no surplus by purchasing a cup of coffee.
C) Advik will get the same surplus whether he purchases a cup of coffee or not.
D) All of these are correct.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Deadweight loss:


A) occurs in markets that are efficient.
B) occurs when markets are in equilibrium.
C) is the loss in surplus from a market not in equilibrium.
D) is additional surplus from an additional market transaction.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

According to the graph shown, if the market goes from equilibrium to having its price set at $10, how will surplus transfer? A) $12 transfers from consumer surplus to producer surplus. B) $12 transfers from producer surplus to consumer surplus. C) All consumer surplus lost is gained by producers. D) All producer surplus lost is gained by consumers. According to the graph shown, if the market goes from equilibrium to having its price set at $10, how will surplus transfer?


A) $12 transfers from consumer surplus to producer surplus.
B) $12 transfers from producer surplus to consumer surplus.
C) All consumer surplus lost is gained by producers.
D) All producer surplus lost is gained by consumers.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

For which of the following reasons might a market be missing?


A) Public policy prevents the market from existing.
B) The production of a particular good is banned.
C) Potential buyers and sellers lack accurate information.
D) All of these are reasons why a market might be missing.

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

If a market is missing:


A) deadweight loss is zero.
B) total surplus is maximized.
C) the market is inefficient.
D) trades are not mutually beneficial.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

What is the producer surplus earned by a seller whose willingness to sell is $10 below the market price of a good?


A) $0
B) $10
C) (P* − $10)
D) None of these are correct.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Assume the market depicted in the graph is in equilibrium. If the market goes from equilibrium to having its price set at $18: A) consumer surplus will rise by $6,750. B) producer surplus will fall by $4,500. C) total surplus will rise by $2,250. D) total surplus will fall by $2,250. Assume the market depicted in the graph is in equilibrium. If the market goes from equilibrium to having its price set at $18:


A) consumer surplus will rise by $6,750.
B) producer surplus will fall by $4,500.
C) total surplus will rise by $2,250.
D) total surplus will fall by $2,250.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina considers herself a grill-master, and finds a grill a necessity, so she is willing to pay $400 for a grill. Javier is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Kamal wants to impress his friends with his vegetable grilling skills and is willing to pay $320 for a grill. Lina loves grilled shrimp and thinks it might be cheaper in the long run if she grills her own shrimp instead of eating out at a restaurant, so she is willing to pay $200 for a grill.If the market price of grills falls from $395 to $340, which of the following statements is true?


A) Martina's consumer surplus increases from $5 to $60, and total consumer surplus increases from $5 to $70.
B) Martina's consumer surplus decreases from $60 to $5, and total consumer surplus decreases from $70 to $5.
C) Kamal's consumer surplus increases from $0 to $20, and total consumer surplus increases from $5 to $70.
D) Javier's consumer surplus decreases from $10 to $0, and total consumer surplus increases from $10 to $80.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

A market to buy and sell organs:


A) would generate consumer surplus, but could never generate producer surplus.
B) has been banned by public policy because its creation would cause excessive deadweight loss.
C) would create surplus for those who would interact in it if it existed.
D) has not been created because it would redistribute surplus from producers to consumers.

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

When the market price is set above the equilibrium price:


A) total surplus increases.
B) consumer surplus increases for some consumers but falls for others.
C) there are no exchanges that can make some better off without others becoming worse off.
D) the market is not efficient.

E) A) and B)
F) None of the above

Correct Answer

verifed

verified

Assume the market depicted in the graph is in equilibrium. If its price is subsequently set at $12, producer surplus will be areas: A) B + C + D + F + G + H B) B + C + D + E + F + G + H C) A + B + F + H D) B + F + H Assume the market depicted in the graph is in equilibrium. If its price is subsequently set at $12, producer surplus will be areas:


A) B + C + D + F + G + H
B) B + C + D + E + F + G + H
C) A + B + F + H
D) B + F + H

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Showing 101 - 120 of 145

Related Exams

Exam 1

Economicsand Life

149 Questions

Exam 2

Specializationand Exchange

154 Questions

Exam 3

Markets

170 Questions

Exam 4

Elasticity

159 Questions

Exam 6

Governmentintervention

171 Questions

Exam 7

Measuringgdp

127 Questions

Exam 8

Thecost of Living

115 Questions

Exam 9

Unemploymentand the Labor Market

115 Questions

Exam 10

Economicgrowth

134 Questions

Exam 11

Aggregateexpenditures

134 Questions

Exam 12

Aggregatedemand and Aggregate Supply

166 Questions

Exam 13

Fiscalpolicy

122 Questions

Exam 14

Thebasics of Finance

170 Questions

Exam 15

Moneyand the Monetary System

146 Questions

Exam 16

Inflation

151 Questions

Exam 17

Financialcrisis

108 Questions

Exam 18

Open-Marketmacroeconomics

124 Questions

Exam 19

Developmenteconomics

122 Questions

Show Answer