Question 1

Figure 7-20 
-Refer to Figure 7-20.At equilibrium,producer surplus is measured by the area

Accepted Answer

A)   ACG.
B)   AFG.
C)   KBG.
D)   CFG.E) C) and D)
F) A) and B)

Question 2

If Rosa is willing to pay $450 for hockey tickets and has consumer surplus of $175,the price of the tickets is $625.

Accepted Answer

A) True 
 B)False

Question 3

Cost is a measure of the

Accepted Answer

A)   seller's willingness to sell.
B)   seller's producer surplus.
C)   producer shortage.
D)   seller's willingness to buy.E) B) and D)
F) All of the above

Question 4

Coffee and tea are substitutes.Bad weather that sharply reduces the coffee bean harvest would

Accepted Answer

A)   increase consumer surplus in the market for coffee and decrease producer surplus in the market for tea.
B)   increase consumer surplus in the market for coffee and increase producer surplus in the market for tea.
C)   decrease consumer surplus in the market for coffee and increase producer surplus in the market for tea.
D)   decrease consumer surplus in the market for coffee and decrease producer surplus in the market for tea.E) None of the above
F) B) and D)

Question 5

Table 7-5
For each of three potential buyers of oranges,the table displays the willingness to pay for the first three oranges of the day.Assume Alex,Barb,and Carlos are the only three buyers of oranges,and only three oranges can be supplied per day.
 
-Refer to Table 7-5.If the market price of an orange increases from $0.70 to $1.40,then consumer surplus

Accepted Answer

A)   increases by $2.50.
B)   decreases by $0.80.
C)   decreases by $2.60.
D)   decreases by $3.40.E) A) and B)
F) All of the above

Question 6

When policymakers are considering a particular action,they can use consumer surplus as a(n)

Accepted Answer

A)   objective measure of the benefits to buyers as determined by policymakers.
B)   measure of the benefits to buyers as the buyers perceive them.
C)   potentially flawed measure of the benefits to buyers if the buyers are not rational.
D)   Both b and c are correct.E) B) and D)
F) A) and D)

Question 7

Producer surplus equals

Accepted Answer

A)   Value to buyers - Amount paid by buyers.
B)   Amount received by sellers - Costs of sellers.
C)   Value to buyers - Costs of sellers.
D)   Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers.E) C) and D)
F) All of the above

Question 8

Table 7-7
The following table represents the costs of five possible sellers.
 
-Refer to Table 7-7.If the price is $775,who would be willing to supply the product?

Accepted Answer

A)   Abby and Bobby
B)   Abby,Bobby,and Carlos
C)   Carlos,Dianne,and Evalina
D)   Dianne and EvalinaE) None of the above
F) B) and C)

Question 9

Figure 7-5 
-Refer to Figure 7-5.If the government imposes a price floor of $120 in this market,then consumer surplus will decrease by

Accepted Answer

A)   $75.
B)   $125.
C)   $225.
D)   $300.E) B) and D)
F) None of the above

Question 10

Jeff decides that he would pay as much as $3,000 for a new laptop computer.He buys the computer and realizes consumer surplus of $700.How much did Jeff pay for his computer?

Accepted Answer

A)   $700
B)   $2,300
C)   $3,000
D)   $3,700E) A) and C)
F) C) and D)

Question 11

Figure 7-17 
-Refer to Figure 7-17.When the price is P1,area B+C represents

Accepted Answer

A)   total surplus.
B)   producer surplus.
C)   consumer surplus.
D)   None of the above is correct.E) B) and C)
F) C) and D)

Question 12

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) C) and D)
F) A) and C)

Question 13

Figure 7-17 
-Refer to Figure 7-17.When the price is P1,area B represents

Accepted Answer

A)   total surplus.
B)   producer surplus.
C)   consumer surplus.
D)   profits.E) A) and D)
F) A) and C)

Question 14

Table 7-7
The following table represents the costs of five possible sellers.
 
-Refer to Table 7-7.If the market price is $1,100,the combined total cost of all participating sellers is

Accepted Answer

A)   $3,700.
B)   $2,700.
C)   $2,250.
D)   $1,250.E) B) and C)
F) None of the above

Question 15

Figure 7-3 
-Refer to Figure 7-3.When the price falls from P1 to P2,which area represents the increase in consumer surplus to new buyers entering the market?

Accepted Answer

A)   ABD
B)   ACG
C)   BCDF
D)   DFGE) A) and C)
F) B) and C)

Question 16

Table 7-11
 
-Refer to Table 7-11.The equilibrium price is

Accepted Answer

A)   $10.00.
B)   $8.00.
C)   $6.00.
D)   $4.00.E) None of the above
F) A) and D)

Question 17

Figure 7-3 
-Refer to Figure 7-3.If the government imposes a price floor of $90 in this market,then consumer surplus will be

Accepted Answer

A)   $225.
B)   $450.
C)   $975.
D)   $1,350E) All of the above
F) C) and D)

Question 18

Inefficiency can be caused in a market by the presence of

Accepted Answer

A)   market power.
B)   externalities.
C)   imperfectly competitive markets.
D)   All of the above are correct.E) A) and D)
F) A) and C)

Question 19

Consumer surplus equals the

Accepted Answer

A)   value to buyers minus the amount paid by buyers.
B)   value to buyers minus the cost to sellers.
C)   amount received by sellers minus the cost to sellers.
D)   amount received by sellers minus the amount paid by buyers.E) A) and D)
F) A) and B)

Question 20

When there is a technological advance in the pork industry,consumer surplus in that market will

Accepted Answer

A)   increase.
B)   decrease.
C)   not change,since technology affects producers and not consumers.
D)   not change,since consumers' willingness to pay is unaffected by the technological advance.E) B) and C)
F) A) and C)

Exam 7: Consumers,producers,and the Efficiency of Markets

When there is a technological advance in the pork industry,consumer surplus in that market will

Correct Answer
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Figure 7-17 -Refer to Figure 7-17.When the price is P1,area B represents

Correct Answer
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Figure 7-5 -Refer to Figure 7-5.If the government imposes a price floor of $120 in this market,then consumer surplus will decrease by

Correct Answer
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Figure 7-20 -Refer to Figure 7-20.At equilibrium,producer surplus is measured by the area

Correct Answer
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Jeff decides that he would pay as much as $3,000 for a new laptop computer.He buys the computer and realizes consumer surplus of $700.How much did Jeff pay for his computer?

Correct Answer
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Coffee and tea are substitutes.Bad weather that sharply reduces the coffee bean harvest would

Correct Answer
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Inefficiency can be caused in a market by the presence of

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

Correct Answer
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Table 7-11 -Refer to Table 7-11.The equilibrium price is

Correct Answer
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Cost is a measure of the

Correct Answer
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When policymakers are considering a particular action,they can use consumer surplus as a(n)

Correct Answer
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Figure 7-3 -Refer to Figure 7-3.If the government imposes a price floor of $90 in this market,then consumer surplus will be

Correct Answer
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Consumer surplus equals the

Correct Answer
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If Rosa is willing to pay $450 for hockey tickets and has consumer surplus of $175,the price of the tickets is $625.

Correct Answer
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Producer surplus equals

Correct Answer
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Table 7-7 The following table represents the costs of five possible sellers. -Refer to Table 7-7.If the price is $775,who would be willing to supply the product?

Correct Answer
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Figure 7-3 -Refer to Figure 7-3.When the price falls from P1 to P2,which area represents the increase in consumer surplus to new buyers entering the market?

Correct Answer
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Table 7-7 The following table represents the costs of five possible sellers. -Refer to Table 7-7.If the market price is $1,100,the combined total cost of all participating sellers is

Correct Answer
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Figure 7-17 -Refer to Figure 7-17.When the price is P1,area B+C represents

Correct Answer
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Exam 7: Consumers,producers,and the Efficiency of Markets

When there is a technological advance in the pork industry,consumer surplus in that market will

Correct AnswerverifiedShow Answer

Figure 7-17 -Refer to Figure 7-17.When the price is P1,area B represents

Correct AnswerverifiedShow Answer

Figure 7-5 -Refer to Figure 7-5.If the government imposes a price floor of $120 in this market,then consumer surplus will decrease by

Correct AnswerverifiedShow Answer

Figure 7-20 -Refer to Figure 7-20.At equilibrium,producer surplus is measured by the area

Correct AnswerverifiedShow Answer

Jeff decides that he would pay as much as $3,000 for a new laptop computer.He buys the computer and realizes consumer surplus of $700.How much did Jeff pay for his computer?

Correct AnswerverifiedShow Answer

Coffee and tea are substitutes.Bad weather that sharply reduces the coffee bean harvest would

Correct AnswerverifiedShow Answer

Inefficiency can be caused in a market by the presence of

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

Table 7-11 -Refer to Table 7-11.The equilibrium price is

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Cost is a measure of the

Correct AnswerverifiedShow Answer

When policymakers are considering a particular action,they can use consumer surplus as a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 7-3 -Refer to Figure 7-3.If the government imposes a price floor of $90 in this market,then consumer surplus will be

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Consumer surplus equals the

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If Rosa is willing to pay $450 for hockey tickets and has consumer surplus of $175,the price of the tickets is $625.

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Producer surplus equals

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Table 7-7 The following table represents the costs of five possible sellers. -Refer to Table 7-7.If the price is $775,who would be willing to supply the product?

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Figure 7-3 -Refer to Figure 7-3.When the price falls from P1 to P2,which area represents the increase in consumer surplus to new buyers entering the market?

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Table 7-7 The following table represents the costs of five possible sellers. -Refer to Table 7-7.If the market price is $1,100,the combined total cost of all participating sellers is

Correct AnswerverifiedShow Answer

Figure 7-17 -Refer to Figure 7-17.When the price is P1,area B+C represents

Correct AnswerverifiedShow Answer

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