Economics Chapter 4 Points Individual Seller Could Made Better Off

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Test Canvas : Self-Test Quiz – Chapter 04

Microeconom ics, 3e

Test Canvas: Self-Test Quiz – Chapter 04

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1. Multiple Choice: Consumer surplus is the:

Question Consumer surplus is the:

Answer

difference between the quantity of a good demanded and the quantity supplied.

2. Multiple Choice: Suppose at a price of $1.73 per ...

Question Suppose at a price of $1.73 per gallon, residents of Tacoma purchase 1 million

gallons of gas every week. If the price of gas increases to $2.46 per gallon,

consumer surplus will:

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Points: 1

3. Multiple Choice: Suppose that the price of a hotel roo...

Question Suppose that the price of a hotel room in San Diego averages $200 per night and

that 30,000 people stay in hotel rooms on an average night in San Diego. If the

average level of consumer surplus for each hotel guest equals $24, what is the total

consumer surplus per night?

4. Multiple Choice: Ahmed, Boris, Roberto, and Sunil all ...

Question Ahmed, Boris, Roberto, and Sunil all want to attend a football game. The

admission price is $48. Ahmed is willing to pay $59 for the ticket. Boris is willing to

pay $39. Roberto is willing to pay $45, and Sunil is willing to pay $55. Based on

this information, who will go to the game?

Answer Ahmed, Boris, Roberto, and Sunil

Points: 1

5. Multiple Choice: Samia is willing to pay $10 for ...

Question Samia is willing to pay $10 for one bracelet and $5 for a second. Isabella is willing

to pay $12 for one bracelet and $2 for a second. If the price is currently $8 per

bracelet, what is the total consumer surplus after Samia and Isabella make their

purchases?

Answer

$8

6. Multiple Choice: Javier and Pierre each want to buy an...

Question Javier and Pierre each want to buy an ice cream cone. Javier is willing to pay $2.50

and Pierre is willing to pay $4.00. If the ice cream cone costs $2.25, what is the

total consumer surplus after Javier and Pierre make their purchases?

Answer

$6.50

Points: 1

7. Multiple Choice: Graciela is willing to sell a dozen r…

Question Graciela is willing to sell a dozen roses for $50, while Giuseppe is willing to sell a

dozen roses for $60. Carlos is willing to buy a dozen roses for $60, while Yuriko is

willing to pay $50. If the market price is $52, how many roses are sold and what is

the sum total of consumer and producer surplus after the transaction(s)?

8. Multiple Choice: In a voluntary exchange:

Question In a voluntary exchange:

Answer

the amount of consumer surplus will equal the amount of producer surplus.

Points: 1

9. Multiple Choice: Which of the following is NOT an inst...

Question Which of the following is NOT an instance of market failure?

Answer

Production of a good generates pollution.

10. Multiple Choice: Economic theory asserts that:

Question Economic theory asserts that:

Answer

the equilibrium market price will maximize consumer surplus and minimize

producer surplus.

11. Multiple Choice: An efficient outcome is one in which:

Question An efficient outcome is one in which:

Answer all consumers who desire the good can afford it at the current price.

no individual buyer could be made better off.

Points: 1

12. Multiple Choice: Mario is willing to mow one lawn for ...

Question Mario is willing to mow one lawn for $18; he will mow a second for $22, and a third

for $28. Assume that the market rate for lawn mowing is $24. How many lawns will

Mario mow? What will be his total revenue? What will be his producer surplus?

13. Multiple Choice: Market failure arises when the market…

Question Market failure arises when the market fails to:

Points: 1

14. Multiple Choice: Which area on a graph showing a firm‘…

Question Which area on a graph showing a firm’s supply curve represents producer surplus?

Answer

the area under the demand curve down to a line indicating price

15. Multiple Choice: Look at the table above that shows wi...

Question

Look at the table above that shows willingness to pay for a concert ticket to see

Green Day at Red Rocks stadium. If the ticket price is $30 ticket how many tickets

will be sold and what is total consumer surplus?

Answer

five tickets sold; total consumer surplus = $160.

Points: 1

16. Multiple Choice: Look again at the table above that sh…

Question

Look again at the table above that shows willingness to pay for a concert ticket to

see Green Day at Red Rocks. If each ticket is priced at $20 instead of the original

$30:

17. Multiple Choice: Look again at the table above that sh…

Question

Points: 1

Look again at the table above that shows willingness to pay for a concert ticket to

see Green Day at Red Rocks. Now assume that the ticket seller is able to charge

$20 a ticket for general admission and $50 per ticket for a reserved seat. All

consumers would rather have a reserved seat and any consumer willing to meet the

price is given a reserve seat. The number of tickets sold and the total consumer

surplus is equal to:

Answer

five tickets sold; total consumer surplus = $160.

18. Multiple Choice: Producer surplus is the:

Question Producer surplus is the:

Answer

difference between the quantity demanded and the quantity supplied of a good.

Points: 1

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19. Multiple Choice: Consumer surplus is positive when:

Question Consumer surplus is positive when:

Answer

the price the consumer is willing to pay equals the market price.

20. Multiple Choice: Producer surplus is positive when:

Question Producer surplus is positive when:

Answer

the price the producer is willing to charge equals the market price.

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Points: 1