Question :
The figure above shows the market for pizza.
13) In the : 1241557
The figure above shows the market for pizza.
13) In the figure above, when the market is in equilibrium, marginal benefit ________ marginal cost, so the quantity of pizza produced is ________.
A) equals; efficient
B) exceeds; efficient
C) is below; efficient
D) is below; not efficient
E) exceeds; not efficient
14) In the figure above, if pizza production is restricted to 5,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs.
A) exceeds; overproduction
B) exceeds; underproduction
C) is below; overproduction
D) is below; underproduction
E) exceeds; efficient production
15) In the figure above, if pizza production increases to 15,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs.
A) exceeds; overproduction
B) exceeds; underproduction
C) is below; overproduction
D) is below; underproduction
E) exceeds; efficient production
16) In the figure above, if pizza production is restricted to 5,000 pizzas a day, the deadweight loss is
A) $45,000 per day.
B) $12,500 per day.
C) $22,500 per day.
D) $90,000 per day.
E) zero.
17) In the figure above, if pizza production increases to 15,000 pizzas a day, the deadweight loss is
A) $45,000 per day.
B) $12,500 per day.
C) $22,500 per day.
D) $90,000 per day.
E) zero.
6.7 Integrative Questions
1) The figure above shows the market for brooms. If the market is efficient,
A) 0 brooms are produced.
B) 600 brooms are produced.
C) more than 1000 brooms are produced.
D) between 0 and 600 brooms are produced.
E) between 600 and 1000 brooms are produced.
2) The figure above shows the market for brooms. If 800 brooms are produced,
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) market failure and a deadweight loss occur.
D) marginal cost is less than marginal benefit.
E) there is no deadweight loss.
3) The figure above shows the market for brooms. If 800 brooms are produced,
A) marginal cost exceeds marginal benefit.
B) a deadweight loss does not occur because everyone who wants to buy a broom can.
C) the “big tradeoff” occurs.
D) value exceeds price.
E) the “fair results” approach to fairness is definitely not violated.
4) The figure above shows the market for brooms. If 400 brooms are produced,
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) market failure and a deadweight loss occur.
D) marginal cost is greater than marginal benefit.
E) consumer surplus equals zero.
5) The figure above shows the market for brooms. Which of the following could lead to the production of fewer than 600 brooms?
A) a monopoly
B) a deadweight loss
C) subsidies
D) an external cost
E) a big tradeoff
6) When society must decrease the production of something in order to produce more of another good or service, society has necessarily achieved
A) only production efficiency.
B) only allocative efficiency.
C) both production efficiency and allocative efficiency.
D) a free lunch.
E) the maximum opportunity cost..
7) When a society achieves production efficiency, it is
A) definitely producing at a point on its PPF.
B) perhaps producing at a point on its PPF and perhaps producing at a point inside its PPF.
C) definitely producing that combination of goods and services that society values most highly.
D) not fully employing all of its available resources to produce goods and services.
E) enjoying a free lunch.
