Question :
11) Deadweight loss refers to
A) the opportunity cost to firms : 1388173
11) Deadweight loss refers to
A) the opportunity cost to firms from producing the equilibrium quantity in a competitive market.
B) the sum of consumer and producer surplus.
C) the loss of economic surplus when the marginal benefit equals the marginal cost of the last unit produced.
D) the reduction in economic surplus resulting from not being in competitive equilibrium.
12) The sum of consumer surplus and producer surplus is equal to
A) the deadweight loss.
B) the economic surplus.
C) zero.
D) total profit.
13) Economic surplus is maximized in a competitive market when
A) demand is equal to supply.
B) the deadweight loss equals the sum of consumer surplus and producer surplus.
C) marginal benefit equals marginal cost.
D) producers sell the quantity that consumers are willing to buy.
14) ________ 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 the sum of consumer surplus and producer surplus is at a maximum.
A) Economic efficiency
B) Consumer efficiency
C) Producer efficiency
D) Deadweight efficiency
15) If, in a competitive market, marginal benefit is greater than marginal cost
A) the net benefit to consumers from participating in the market is greater than the net benefit to producers.
B) the government must force producers to lower price 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.
16) In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers.
A) .demand; supply
B) supply; demand
C) demand; market demand
D) supply; market supply
Figure 4-4
17) Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $3
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.
B) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.
C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.
18) Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $1
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.
B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000.
C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.
19) Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1
A) the quantity supplied is less than the economically efficient quantity.
B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.
C) economic surplus is maximized.
D) not enough consumers want to buy iced tea.
20) Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) the quantity supplied is greater than the economically efficient quantity.
B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.
C) economic surplus is maximized.
D) too many consumers want to buy iced tea.
or Waypoint 
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