Question : 11.A buyer always wants to: A. buy for a price that as : 1379021

 

 

11.A buyer always wants to:

A. buy for a price that is as low as possible, but never higher than his maximum.

B. buy for a price that is as high as possible, but never higher than his maximum.

C. buy for a price that is as low as possible, but never lower than his minimum.

D. buy for a price that is as high as possible, but never lower than his minimum.

12.Willingness to pay represents:

A. the point at which the benefit that a person will get from a good is equal to the benefit of spending the money on another alternative.

B. the opportunity cost of a good.

C. the buyer’s reservation price.

D. All of these represent willingness to pay.

13.The willingness to pay of buyers’ in a market:

A. is represented by the demand curve.

B. is represented by the supply curve.

C. explains why the demand curve is bowed-out.

D. explains why the demand curve is bowed-in.

14.At prices above a consumers’ reservation price:

A. the opportunity cost is greater than the benefit from having the good.

B. the opportunity cost is less than the benefit from having the good.

C. the buyer will purchase the good.

D. None of these is true.

15.At prices below a consumer’s maximum willingness to pay:

A. the buyer will participate in the market because the opportunity cost is less than the benefit from having the good.

B. the buyer will participate in the market because the opportunity cost is more than the benefit from having the good.

C. the buyer will not participate in the market because the opportunity cost is less than the benefit from having the good.

D. the buyer will not participate in the market because the opportunity cost is more than the benefit from having the good.

16.Each seller’s opportunity costs are:

A. determined monetarily, which is why they can never be zero.

B. determined by a number of factors, none of which is monetary.

C. determined by a number of factors, including monetary considerations.

D. None of these is true.

17.If Thelma’s willingness to sell her homemade fudge is $4, then at which of the following prices would Thelma sell her fudge?

A. $2

B. $3.99

C. $4.01

D. Thelma would not sell her fudge at any of these prices.

18.If Sam’s opportunity cost of a sweater is $37, which of the following prices would he have to observe in the market in order to sell a sweater?

A. $37

B. $37.01

C. $50

D. Sam would sell a sweater at any of these prices.

19.Surplus is:

A. a way of measuring who benefits from transactions and by how much.

B. the difference between the price the buyer would have paid and the actual price paid.

C. the difference between the price the seller would have accepted and the actual sell price.

D. All of these statements are true.

20.Surplus is:

A. the difference between the price at which a buyer or seller would be willing to trade and the actual price.

B. the difference between the willingness to pay and the actual price paid.

C. the difference between the willingness to sell and the actual price accepted.

D. All of these are true.

 

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