Question : 51) The difference between the ________ and the ________ from : 1387430

51) The difference between the ________ and the ________ from the sale of a product is called producer surplus.

A) lowest price a firm would have been willing to accept; price it actually receives

B) highest price a firm would have been willing to accept; lowest price it was willing to accept

C) cost to produce a product; price a firm actually receives

D) cost to produce a product; profit received

Figure 4-2

52) Refer to Figure 4-2.  What area represents producer surplus at a price of P2?

A) A + B

B) B + D

C) A + B + C

D) A + B + C + D + E

53) Refer to Figure 4-2.  What area represents the increase in producer surplus when the market price rises from P1 to P2?

A) B + D

B) A + C + E

C) C + E

D) A + B

54) Refer to Figure 4-2.  What area represents producer surplus at a price of P1?

A) C

B) A + C

C) C + E

D) A + C + E

55) Refer to Figure 4-2.  What area represents the decrease in producer surplus when the market price falls from P2 to P1?

A) C + E

B) A + C + E

C) A + B

D) B + D

56) Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service. The economists found that

A) the consumer surplus from dial-up Internet service exceeded the consumer surplus from broadband Internet service.

B) the average consumer of broadband Internet service received a marginal benefit equal to $36.

C) most consumers of broadband Internet service were not willing to pay more than $36 per month.

D) one month’s benefit to consumers who subscribe to broadband Internet service is about $890 million.

57) The difference between the ________ for a good and the ________ is called consumer surplus.

A) highest price a consumer is willing to pay; lowest price a consumer is willing to pay

B) lowest price a consumer is willing to pay; price the consumer actually pays

C) highest price a consumer is willing to pay; price the consumer actually pays

D) price the consumer actually pays; actual cost to the producer

58) In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments.

A) above; surplus

B) above; shortage

C) below; surplus

D) below; shortage

59) Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent control; in the other city (Halftrack) one-half of the apartments are rent controlled. Which of the following is most likely to be true?

A) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control.

B) It will be easier to find an affordable apartment in Albany since rents will be low across the board.

C) It will be easier to find an affordable apartment in Halftrack, either a rent-controlled apartment or another apartment, at a reasonable price.

D) It will be impossible to rent an apartment in either city at any price.

60) Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita’s consumer surplus from the purchase is

A) $35.

B) $85.

C) $120.

D) $205.