Chapter 5 Quiz example #43936

Market failure is a situation in which the market​ _____ .

Sara and Zoe are the only people in an economy. The following data tells you about their purchases of soda. Sara bought 3 bottles when the price is​ $3 a​ bottle, 4 bottles when the price is​ $2 a​ bottle, and 5 bottles when the price was​ $1 a bottle. Zoe bought no soda when the price was​ $3 a​ bottle, 2 bottles when the price is​ $2 a​ bottle, and 3 bottles when the price was​ $1 a bottle. In the market for​ soda, the quantity demanded​ _______.

Utilitarianism is a principle that states that we should strive to achieve​ "the _____ for the​ _____."

Consumer surplus is the​ _____ from a good or​ service, in excess of the​ _____, summed over the quantity consumed.

Total surplus is the sum of​ _____ and​ _____.

Deadweight loss is the decrease in​ _____ that results from an inefficient​ _____ or​ _____.

Which of the following statements describes the big tradeoff​? Sharing the pie more equally​ _____ .

Which of the following statements is an example of transaction costs​?