Question : 6.2   Value, Price, and Consumer Surplus 1) Which describes the economic : 1239121

6.2   Value, Price, and Consumer Surplus

1) Which describes the economic meanings of value and price?

A) Value is exchange worth minus marginal benefit and price is the dollars that must be paid.

B) Value is the marginal benefit obtained and price is the dollars that must be paid.

C) Value refers to the gain the producer gets from the good or service and price refers to the gain the consumer gets from the good or service.

D) Value refers to the dollars that must be paid and price refers to the cost of producing the good.

E) They are the same and both mean the dollars that must be paid.

2) The value of a slice of pizza to a consumer is equal to

A) its marginal benefit.

B) the maximum price the consumer is willing to pay.

C) the consumer surplus.

D) Both answers A and B are correct.

E) Both answers B and C are correct.

3) To an economist, “value” is the same as

A) marginal cost.

B) consumer surplus.

C) the minimum price that people are willing to pay for another unit of the good.

D) marginal benefit.

E) total surplus.

4) Which of the following statements is correct?

i.The demand curve shows the maximum price people are willing to pay for a given quantity of the good.

ii.The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit.

iii.Value is what a consumer receives and price is what a consumer pays.

A) i only

B) ii only

C) iii only

D) i and iii

E) i, ii, and iii

5) Value and price can be compared by noting that

A) they are the same thing.

B) value is always greater than price.

C) value is what we must pay while price is what we are willing to pay.

D) price is what we must pay and value is what we are willing to pay.

E) value is what the seller receives when we buy a good, and price is what we must pay when we buy a good.

6) The maximum amount of other goods and services that people are willing to give up in order to get one more unit of a good is defined as the good’s

A) marginal benefit.

B) total benefit.

C) marginal cost.

D) total cost.

E) price.

7) The marginal benefit of each additional unit of a good consumed

A) increases as more is consumed.

B) is always equal to its marginal cost.

C) decreases as more is consumed.

D) will maximize consumer surplus.

E) is equal to the deadweight loss if the unit of the good is not produced.

8) The phrase “decreasing marginal benefit” means that

A) the more you consume of the product, the less total benefit you derive.

B) the marginal cost will be increasing as you consume more of a good.

C) each additional unit of a good you consume gives you less additional benefit than the previous unit.

D) Both answers A and B are correct.

E) Both answers A and C are correct.

9) What must be true for a consumer to buy a good or service?

A) The price must be equal to or less than the marginal benefit.

B) The total benefit received must equal the total spent to buy the good or service.

C) The consumer must be able to obtain some consumer surplus.

D) The consumer must not be able to produce the product.

E) The price must be equal to or greater than the marginal benefit.

10) Mark loves ice cream. At any point in time, he will buy an additional ice cream cone if

A) the marginal benefit from it exceeds the price.

B) the marginal benefit from it is zero.

C) his willingness to pay is less than the price.

D) there is no deadweight loss produced by his purchase of a cone.

E) None of the above answers is correct.