Chapter 5 Quiz example #43936

25 February 2023
4.4 (72 reviews)
8 test answers

Unlock all answers in this set

Unlock answers (4)
question
Market failure is a situation in which the market‚Äč _____ .
answer
delivers an inefficient outcome
question
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‚Äč $3 a‚Äč bottle, 4 bottles when the price is‚Äč $2 a‚Äč bottle, and 5 bottles when the price was‚Äč $1 a bottle. Zoe bought no soda when the price was‚Äč $3 a‚Äč bottle, 2 bottles when the price is‚Äč $2 a‚Äč bottle, and 3 bottles when the price was‚Äč $1 a bottle. In the market for‚Äč soda, the quantity demanded‚Äč _______.
answer
is 6 bottles at‚Äč $2 a bottle
question
Utilitarianism is a principle that states that we should strive to achieve‚Äč "the _____ for the‚Äč _____."
answer
greatest‚Äč happiness; greatest number
question
Consumer surplus is the‚Äč _____ from a good or‚Äč service, in excess of the‚Äč _____, summed over the quantity consumed.
answer
marginal‚Äč benefit; price paid for it
question
Total surplus is the sum of‚Äč _____ and‚Äč _____.
answer
consumer‚Äč surplus; producer surplus
question
Deadweight loss is the decrease in‚Äč _____ that results from an inefficient‚Äč _____ or‚Äč _____.
answer
total‚Äč surplus; underproduction; overproduction
question
Which of the following statements describes the big tradeoff‚Äč? Sharing the pie more equally‚Äč _____ .
answer
makes it smaller.
question
Which of the following statements is an example of transaction costs‚Äč?
answer
I paid a commission to the real estate broker when I bought my house.