Question : 11) ________ refers to the reduction in economic surplus resulting : 1387442

11) ________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium.

A) Marginal cost

B) Producer atrophy

C) Deadweight loss

D) Economic shortage

12) Economic surplus

A) does not exist when a competitive market is in equilibrium.

B) is equal to the sum of consumer surplus and producer surplus.

C) is the difference between quantity demanded and quantity supplied when the market price for a product is greater than the equilibrium price.

D) is equal to the difference between consumer surplus and producer surplus.

13) ________ is maximized in a competitive market when marginal benefit equals marginal cost.

A) Deadweight loss

B) Marginal profit

C) Economic surplus

D) Selling price

14) 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.

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 surplus is minimized.

15) 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.

16) In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________.

A) utility; average cost.

B) marginal benefit; marginal cost

C) economic surplus; opportunity cost

D) net benefit; net cost

Figure 4-5

17) Refer to Figure 4-5.  The figure above represents the market for pecans. Assume that this is a competitive market. At a price of $9,

A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should lower the price to $3 in order to sell the quantity demanded of 4,000.

C) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.

D) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.

18) Refer to Figure 4-5.  The figure above represents the market for pecans. Assume that this is a competitive market. At a price of $3,

A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should raise the price to $9 in order to sell the quantity demanded of 12,000.

C) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.

D) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.

19) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $3,

A) economic surplus is maximized.

B) not enough consumers want to buy pecans.

C) the quantity supplied is less than the economically efficient quantity.

D) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.

20) Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9,

A) economic surplus is maximized.

B) too many consumers want to buy pecans.

C) the quantity supplied is greater than the economically efficient quantity.

D) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.