Question :
91) Consider the supply curve for a product such as : 1384177
91) Consider the supply curve for a product such as shipping crates, which shows how many crates producers want to sell at each possible price. Alternatively, we could view this supply curve in the following way:
A) for each quantity of shipping crates, the supply curve shows the economic surplus generated by the provision of that ticket.
B) for each possible price, the supply curve shows the economic surplus generated by the provision of those crates.
C) for each quantity of shipping crates, the supply curve shows the extent of market inefficiency and deadweight loss.
D) for each quantity of shipping crates, the supply curve shows the value that consumers place on that particular crate.
E) for each quantity of shipping crates, the price on the supply curve shows the additional cost to the producer of supplying that crate.
92) Suppose a downward-sloping demand curve intersects the horizontal axis at a point where quantity demanded equals 1250 units. What is the “value” that consumers place on the 1250th unit of this good?
A) a negative value
B) a positive value
C) $0
D) $1250
E) it depends on the position of the supply curve
93) Suppose a negatively sloped demand curve and a positively sloped supply curve intersect at a price and quantity combination of $100 and 600 units of the good. But suppose that producers actually produce and sell 610 units. What can we correctly say about market efficiency in this case?
A) The value placed on the final 10 units of the good by consumers exceeds the additional costs associated with their production – this market is not efficient.
B) The production and consumption of the additional 10 units of the good increases total economic surplus and increases market efficiency.
C) This market is efficient because economic surplus is maximized as production and consumption increase simultaneously.
D) This market is not efficient because quantity demanded for the good exceeds quantity supplied.
E) The value placed on the final 10 units of the good by consumers is less than the additional costs associated with their production – this market is not efficient.
94) When economists describe a market for a specific product as being economically “efficient,” what do they mean?
A) Production techniques are such that resources are used in the most technologically efficient manner.
B) Consumption of the product is such that economic surplus is maximized.
C) Production of the product is such that economic surplus is maximized.
D) The quantity of the product produced and consumed is such that the economic surplus is maximized.
E) There are no price controls in place in that market.
95) Consider a competitive market for good X. A binding price floor and a binding price ceiling in this market would be similar to each other in that
A) each type of price control will lead to a reduction in deadweight loss and therefore an increase in efficiency in the market for good X.
B) the units of good X that will no longer be produced or consumed will not generate any economic surplus.
C) each type of price control results in a higher price paid by consumers, and therefore to a reduction in economic surplus.
D) each type of price control results in a lower price received by sellers, and therefore to a reduction in economic surplus.
E) additional units of good X will be produced and consumed, leading to an increase in economic surplus.
96) Each point on a demand curve shows the ________ price that consumers will pay to consume that quantity. The demand curve therefore shows the ________ to consumers from consuming the product.
A) maximum; cost
B) minimum; cost
C) maximum; value
D) minimum; value
E) equilibrium; equilibrium price
97) Each point on a supply curve shows the ________ acceptable price to firms for selling that unit; this price reflects ________ to firms from producing that unit.
A) minimum; the equilibrium price
B) maximum; the additional value
C) minimum; the additional value
D) maximum; the additional cost
E) minimum; the additional cost
98) Geoff is willing to pay $13 for a sixth entrance to a mountain bike park. The market price for entrance is $10.50. The bike park is willing to accept $8.75. The total economic surplus generated from Geoff’s sixth trip to the bike park is
A) $1.75.
B) $2.50.
C) $13.00.
D) $10.50.
E) $4.25.
99) Consider a market that is in equilibrium with a market-clearing price. Economic surplus is shown by
A) the intersection of the supply and demand curves.
B) the area that is both below the demand curve and above the supply curve.
C) the area that is both above the demand curve and below the supply curve.
D) the area to the right of the market-clearing price and quantity.
E) the area below the supply curve up to the equilibrium quantity and below the demand curve beyond the equilibrium quantity.
100) If 10 000 snow tires are produced and purchased in the month of November, we can say that economic surplus is
A) the net value that society as a whole receives by producing and consuming those 10 000 snow tires.
B) the number of snow tires that are produced in excess of the equilibrium quantity.
C) the profit earned by the producers of those 10 000 snow tires.
D) the price at which the tires are sold multiplied by 10 000.
E) the net value to those consumers who purchased the 10 000 snow tires.
