ECON CHAPTER 4 example #15480

Each point on a ____________curve shows the willingness of consumers to purchase a product at different prices. A- demand B- supply C- production possibilities D- marginal cost

The total amount of producer SURPLUS in a market is EQUAL to A- the difference between quantity supplied and quantity demanded. B- the area above the market supply curve and below the market price. C- the area above the market supply curve. D- the area between the demand curve and the supply curve below the market price.

Willingness to pay (WTP) measures: A- the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for it. B- the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept for the good. C- the maximum price that a buyer is willing to pay for a good. D- the maximum price a buyer is willing to pay minus the minimum price a seller is willing to accept.

Consumer surplus in a market for a product would be EQUAL to ________ if the market price was zero. A- zero B- the area between the supply curve and the demand curve C- the area above the supply curve D- the area under the demand curve

Consumers are willing to purchase a product up to the point where: A- the marginal benefit of consuming the product is equal to the marginal cost of consuming it. B- the consumer surplus is equal to the producer surplus. C- the marginal benefit of consuming the product equals the area below the surplus curve and above the market price. D- the marginal benefit of consuming a product is equal to its price.

Which of the following statements best describes the concept of consumer surplus? A- "Safeway was having a sale on Dreyer's ice cream so I bought 3 quarts" B- "I was all ready to pay $300 for a new leather jacket that I had seen in Macy's but I ended up paying only $180 for the same jacket" C- "I paid $130 for a printer last week. This week the same store is selling the same printer for $110". D- "I sold my blu-ray copy for $18 at a garage sale even though I was willing to sell it for $10"

Which of the following statements is true? A- Consumer surplus measure the total benefit from participating in a market B- When a market is in equilibrium consumer surplus equals producer surplus C- Consumer surplus measures the net benefit from participating in a market D- Producer surplus measure the total benefit received by producers from participating in the market

A _______ curve show the marginal cost of producing one more unit of a good or service. A- demand B- supply C- production possibilites D- marginal benefit

Economic efficiency is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which: A- the sum of consumer surplus and producer is at a maximum B- economic surplus is minimized C- the sum of the benefits to firms is equal to the sum of the benefits to consumers D the sum of consumer surplus and producer is minimized

If, in a competitive market, marginal benefit is less than marginal cost A- the net benefit to consumers from participating in the market is less than the net benefit to producers B- the government must force producers to raise prices in order to achieve economic efficiency C- the quantity sold is greater than the equilibrium quantity D- the quantity sold is less than the equilibrium quantity

Economic efficiency in a competitive market is achieved when A- economic surplus is equal to consumer surplus B- consumers and producers are satisfied C- the marginal benefit equals the marginal cost from the last unit sold D-producer surplus equals the total amount firms receive from consumers minus the cost of production

In a competitive market equilibrium the _________ equals the ________ of the last unit sold. A- total profit; marginal benefit B- total cost; marginal cost C- profit; selling price D- marginal benefit; marginal cost

When the marginal benefit equals the marginal cost of the last unit sold in a competitive market A- the net benefit of consumers is equal to the net benefit of producers B- an economically efficient level of output is produced C- producer surplus is equal to consumer surplus D- total benefit is equal to total cost