Question 1

Figure 7-17
 
-Refer to Figure 7-17.Which area represents total surplus in the market when the price is P1?

Accepted Answer

A)   A+B
B)   B+C
C)   C+D
D)   A+B+C+DE) B) and C)
F) A) and D)

Question 2

If the government allowed a free market in organs for transplant there would be

Accepted Answer

A)   a decrease in the shortage of organs for transplant.
B)   a decrease in producer surplus.
C)   an decrease in consumer surplus
D)   an increase in the waiting period for transplant organs.E) None of the above
F) A) and B)

Question 3

Table 7-6
 
-Refer to Table 7-6.You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You offer to sell the tickets for $400.How many tickets do you sell,and what is the total consumer surplus in the market?

Accepted Answer

A)   one ticket; $100
B)   two tickets; $100
C)   two tickets; $0
D)   three tickets; $0E) B) and C)
F) None of the above

Question 4

Figure 7-4
 
-Refer to Figure 7-4.If the price of the good is $6,then consumer surplus is

Accepted Answer

A)   $16.
B)   $24.
C)   $30.
D)   $36.E) B) and C)
F) A) and D)

Question 5

According to many economists,government restrictions on ticket scalping do all of the following except

Accepted Answer

A)   inconvenience the public.
B)   reduce the audience for cultural and sports events.
C)   waste police officers' time.
D)   keep the cost of tickets to all consumers low.E) A) and B)
F) A) and C)

Question 6

Figure 7-19
 
-Refer to Figure 7-19.At equilibrium,total surplus is represented by the area

Accepted Answer

A)   A+B+C.
B)   A+B+D+F.
C)   A+B+C+D+H+F.
D)   A+B+C+D+H+F+G+I.E) A) and B)
F) A) and C)

Question 7

The area below the price and above the supply curve measures the producer surplus in a market.

Accepted Answer

A) True 
 B)False

Question 8

Table 7-8
The only four producers in a market have the following costs:
 
-Refer to Table 7-8.If Evan,Selena,and Angie sell the good,and the resulting producer surplus is $300,then the price must have been

Accepted Answer

A)   $200.
B)   $300.
C)   $450.
D)   $600.E) B) and D)
F) B) and C)

Question 9

Figure 7-18
 
-Refer to Figure 7-18.If 40 units of the good are being bought and sold,then

Accepted Answer

A)   the marginal cost to sellers is equal to the marginal value to buyers.
B)   the marginal value to buyers is greater than the marginal cost to sellers.
C)   the marginal cost to sellers is greater than the marginal value to buyers.
D)   producer surplus would be greater than consumer surplus.E) B) and D)
F) A) and B)

Question 10

Market failure is the inability of

Accepted Answer

A)   buyers to interact harmoniously with sellers in the market.
B)   a market to establish an equilibrium price.
C)   buyers to place a value on the good or service.
D)   some unregulated markets to allocate resources efficiently.E) All of the above
F) None of the above

Question 11

If the government allowed a free market for transplant organs such as kidneys to exist,the

Accepted Answer

A)   shortage of organs would be eliminated, and there would be no surplus of organs.
B)   shortage of organs would be eliminated, but a surplus of organs would develop.
C)   shortage of organs would persist.
D)   overall well-being of society would remain unchanged.E) A) and B)
F) C) and D)

Question 12

Figure 7-18
 
-Refer to Figure 7-18.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by

Accepted Answer

A)   $120.
B)   $360.
C)   $480.
D)   $600.E) B) and C)
F) All of the above

Question 13

Billie Jo values a stainless steel dishwasher for her new house at $500,but she succeeds in buying one for $425.Billie Jo's willingness to pay for the dishwasher is

Accepted Answer

A)   $150.
B)   $425.
C)   $500.
D)   $850.E) A) and B)
F) A) and C)

Question 14

Table 7-1
 
-Refer to Table 7-1.If the price of the product is $22,then who would be willing to purchase the product?

Accepted Answer

A)   Lori
B)   Lori and Audrey
C)   Lori, Audrey, and Zach
D)   Lori, Audrey, Zach, and CalvinE) None of the above
F) A) and B)

Question 15

Alex is willing to pay $10,and Bella is willing to pay $8,for 1 pound of ribeye steak.When the price of ribeye steak increases from $9 to $11,

Accepted Answer

A)   Alex experiences a decrease in consumer surplus, but Bella does not.
B)   Bella experiences a decrease in consumer surplus, but Alex does not.
C)   both Bella and Alex experience a decrease in consumer surplus.
D)   neither Bella nor Alex experiences a decrease in consumer surplus.E) None of the above
F) B) and D)

Question 16

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve,up to the point of equilibrium.

Accepted Answer

A) True 
 B)False

Question 17

Kristi and Rebecca sell lemonade on the corner.It costs them 9 cents to make each cup.On a certain day,they sell 40 cups,and their producer surplus for that day amounts to $12.40.Kristi and Rebecca sold each cup for

Accepted Answer

A)   36 cents.
B)   40 cents.
C)   45 cents.
D)   52 cents.E) B) and C)
F) C) and D)

Question 18

In a competitive market,sales go to those producers who are willing to supply the product at the lowest price.

Accepted Answer

A) True 
 B)False

Question 19

If Darby values a soccer ball at $50,and she pays $40 for it,her consumer surplus is $10.

Accepted Answer

A) True 
 B)False

Question 20

Suppose the demand for peanuts increases.What will happen to producer surplus in the market for peanuts?

Accepted Answer

A)   It increases.
B)   It decreases.
C)   It remains unchanged.
D)   It may increase, decrease, or remain unchanged.E) None of the above
F) All of the above

Exam 7: Consumers, Producers, and the Efficiency of Markets.

Suppose the demand for peanuts increases.What will happen to producer surplus in the market for peanuts?

Correct Answer
verified

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve,up to the point of equilibrium.

Correct Answer
verified

Billie Jo values a stainless steel dishwasher for her new house at $500,but she succeeds in buying one for $425.Billie Jo's willingness to pay for the dishwasher is

Correct Answer
verified

Figure 7-18 -Refer to Figure 7-18.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by

Correct Answer
verified

Figure 7-4 -Refer to Figure 7-4.If the price of the good is $6,then consumer surplus is

Correct Answer
verified

Alex is willing to pay $10,and Bella is willing to pay $8,for 1 pound of ribeye steak.When the price of ribeye steak increases from $9 to $11,

Correct Answer
verified

Correct Answer
verified

According to many economists,government restrictions on ticket scalping do all of the following except

Correct Answer
verified

Figure 7-19 -Refer to Figure 7-19.At equilibrium,total surplus is represented by the area

Correct Answer
verified

In a competitive market,sales go to those producers who are willing to supply the product at the lowest price.

Correct Answer
verified

Figure 7-17 -Refer to Figure 7-17.Which area represents total surplus in the market when the price is P1?

Correct Answer
verified

If the government allowed a free market for transplant organs such as kidneys to exist,the

Correct Answer
verified

Table 7-8 The only four producers in a market have the following costs: -Refer to Table 7-8.If Evan,Selena,and Angie sell the good,and the resulting producer surplus is $300,then the price must have been

Correct Answer
verified

Market failure is the inability of

Correct Answer
verified

Figure 7-18 -Refer to Figure 7-18.If 40 units of the good are being bought and sold,then

Correct Answer
verified

Kristi and Rebecca sell lemonade on the corner.It costs them 9 cents to make each cup.On a certain day,they sell 40 cups,and their producer surplus for that day amounts to $12.40.Kristi and Rebecca sold each cup for

Correct Answer
verified

If Darby values a soccer ball at $50,and she pays $40 for it,her consumer surplus is $10.

Correct Answer
verified

Table 7-1 -Refer to Table 7-1.If the price of the product is $22,then who would be willing to purchase the product?

Correct Answer
verified

If the government allowed a free market in organs for transplant there would be

Correct Answer
verified

The area below the price and above the supply curve measures the producer surplus in a market.

Correct Answer
verified

Exam 7: Consumers, Producers, and the Efficiency of Markets.

Suppose the demand for peanuts increases.What will happen to producer surplus in the market for peanuts?

Correct AnswerverifiedShow Answer

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve,up to the point of equilibrium.

Correct AnswerverifiedShow Answer

Billie Jo values a stainless steel dishwasher for her new house at $500,but she succeeds in buying one for $425.Billie Jo's willingness to pay for the dishwasher is

Correct AnswerverifiedShow Answer

Figure 7-18 -Refer to Figure 7-18.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by

Correct AnswerverifiedShow Answer

Figure 7-4 -Refer to Figure 7-4.If the price of the good is $6,then consumer surplus is

Correct AnswerverifiedShow Answer

Alex is willing to pay $10,and Bella is willing to pay $8,for 1 pound of ribeye steak.When the price of ribeye steak increases from $9 to $11,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to many economists,government restrictions on ticket scalping do all of the following except

Correct AnswerverifiedShow Answer

Figure 7-19 -Refer to Figure 7-19.At equilibrium,total surplus is represented by the area

Correct AnswerverifiedShow Answer

In a competitive market,sales go to those producers who are willing to supply the product at the lowest price.

Correct AnswerverifiedShow Answer

Figure 7-17 -Refer to Figure 7-17.Which area represents total surplus in the market when the price is P1?

Correct AnswerverifiedShow Answer

If the government allowed a free market for transplant organs such as kidneys to exist,the

Correct AnswerverifiedShow Answer

Table 7-8 The only four producers in a market have the following costs: -Refer to Table 7-8.If Evan,Selena,and Angie sell the good,and the resulting producer surplus is $300,then the price must have been

Correct AnswerverifiedShow Answer

Market failure is the inability of

Correct AnswerverifiedShow Answer

Figure 7-18 -Refer to Figure 7-18.If 40 units of the good are being bought and sold,then

Correct AnswerverifiedShow Answer

Kristi and Rebecca sell lemonade on the corner.It costs them 9 cents to make each cup.On a certain day,they sell 40 cups,and their producer surplus for that day amounts to $12.40.Kristi and Rebecca sold each cup for

Correct AnswerverifiedShow Answer

If Darby values a soccer ball at $50,and she pays $40 for it,her consumer surplus is $10.

Correct AnswerverifiedShow Answer

Table 7-1 -Refer to Table 7-1.If the price of the product is $22,then who would be willing to purchase the product?

Correct AnswerverifiedShow Answer

If the government allowed a free market in organs for transplant there would be

Correct AnswerverifiedShow Answer

The area below the price and above the supply curve measures the producer surplus in a market.

Correct AnswerverifiedShow Answer

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