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Tests, Surveys, and Pools Tests
Test Canvas : Self-Test Quiz - Chapter 04
Microeconom ics, 3e
Test Canvas: Self-Test Quiz - Chapter 04
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Total Questions 20
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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
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
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
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
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
Points: 1
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
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
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
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.
OK
Points: 1
Points: 1
