Question :
121.The loss of total surplus that results when the quantity : 1379032
121.The loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity is called:
A. deadweight loss.
B. producer surplus.
C. consumer surplus.
D. total surplus.
122.We say a market is “missing” when:
A. there is no place for potential buyers and sellers to exchange a particular good or service.
B. the quantity being exchanged is at or close to zero.
C. there is an absence of a well-functioning market, and total surplus is lower than it could be.
D. All of these are true.
123.Markets can be missing:
A. because public policy prevents the market from existing.
B. when the production of a particular good is banned.
C. because of a lack of accurate information between potential buyers and sellers.
D. All of these are true.
124.Markets can be missing:
A. because public policy taxes a market.
B. when the sale of a particular service is banned.
C. when miscommunication of information between buyers and sellers leads to the wrong equilibrium price.
D. All of these are true.
125.Markets can be missing if:
A. there is a lack of technology that would make the exchanges possible.
B. there is a ban on the sale of a particular good.
C. there is a lack of accurate information between potential buyers and sellers.
D. All of these are true.
126.Total surplus can be increased if:
A. new markets are created.
B. existing markets are improved.
C. markets get closer to equilibrium.
D. All of these can increase total surplus.
127.Well being can be increased by:
A. policies that help people do business more effectively.
B. technologies that help people share more and better information.
C. increasing the availability of accurate information.
D. All of these are true.
128.Creating a market that was previously “missing”:
A. redistributes surplus from buyer to seller.
B. redistributes surplus from seller to buyer.
C. redistributes surplus from one market to the one that was previously missing.
D. creates more total surplus.
129.The creation of markets that were previously “missing”:
A. increases economic well being.
B. increases total surplus.
C. benefits those who interact in the new markets.
D. All of these are true.
130.The market to buy and sell organs:
A. is missing.
B. has been banned by public policy.
C. would create surplus for those who would interact in it.
D. All of these are true.
131.An example of a “missing” market would be:
A. the market to buy and sell children for adoption.
B. the market to buy and sell a kidney.
C. the market to buy and sell heroin.
D. All of these markets are missing.
132.The market to buy and sell organs:
A. would increase the well being of those who interacted in it.
B. would not be considered “missing,” since surplus could be gained from it.
C. would create negative surplus in those who could not afford an organ, but needed one.
D. would never exist because it is unfair.
