# ECON CHAPTER 4 example #15480

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question
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
Each point on a DEMAND curve shows the willingness of consumers purchase a product at different prices.
question
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.
The total amount of SURPLUS in a market is EQUAL to B- the area ABOVE the market supply curve and BELOW the market price.
question
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.
Willing to pay (WTP) measures C-the MAXIMUM price that a buyer is willing to pay for a good
question
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
Consumer surplus in a market for a product would be EQUAL to the area UNDER the demand curve.
question
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.
Consumers are willing to purchase a product up to the point where: D- the marginal benefit of consuming a product is equal to its price.
question
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 best describes the concept of consumer surplus? 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"
question
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
Which is true? C- Consumer surplus measures the net benefit from participating in a market.
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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
A SUPPLY curve shows the marginal cost producing one more unit of a good or service.
question
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
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 surplus is at a maximum.
question
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