51.RefertoTable7-6.Ifthemarketpriceofanappleis$1.40,thenconsumersurplusamountsto a.$0.60. b.$1.20. c.$1.40. d.$3.40 52.RefertoTable7-6.Ifthemarketpriceofanappleincreasesfrom$1.40to$1.60,thenconsumersurplus a.decreasesby$0.15. b.decreasesby$0.30. c.decreasesby$0.45. d.increasesby$0.15.   Table7-7   Buyer WillingnesstoPay Michael $500 Earvin $400 Larry $350 Charles $300   53.RefertoTable7-7.YouhaveanextratickettotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youholdanauctiontoselltheticket.Whomakesthewinningbid,andwhatdoesheoffertopayfortheticket? a.Michael;$501 b.Michael;morethan$400butlessthanorequalto$500 c.Earvin;$400 d.Earvin;morethan$350butlessthanorequalto$400 54.RefertoTable7-7.YouhaveanextratickettotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youholdanauctiontoselltheticket.Michaelbids$410fortheticket,andyousellhimtheticket.Whatishisconsumersurplus? a.$410 b.$90 c.$10 d. 0 55.RefertoTable7-7.YouhavetwoessentiallyidenticalextraticketstotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youholdanauctiontosellthetwotickets.Whomakesthewinningbids,andwhatdotheyoffertopayforthetickets? a.MichaelandEarvin;morethan$350butlessthanorequalto$400 b.MichaelandEarvin;morethan$400butlessthanorequalto$500 c.EarvinandLarry;morethan$300butlessthanorequalto$350 d.LarryandCharles;lessthan$300 56.RefertoTable7-7.YouhavetwoessentiallyidenticalextraticketstotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youholdanauctiontosellthetwotickets.MichaelandEarvineachoffertopay a.$720 b.$180 c.$140 d.$40 57.RefertoTable7-7.YouhavefouressentiallyidenticalextraticketstotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youoffertoselltheticketsfor$400.Howmanyticketsdoyousell,andwhatisthetotalconsumersurplusinthemarket? a.oneticket;$100 b.twotickets;$100 c.twotickets;$0 d.threetickets;$0 58.RefertoTable7-7.YouhavefouressentiallyidenticalextraticketstotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Youoffertoselltheticketsfor$325.Howmanyticketsdoyousell,andwhatisthetotalconsumersurplusinthemarket? a.oneticket;$175 b.twotickets;$225 c.threetickets;$225 d.threetickets;$275 59.RefertoTable7-7.YouaresellingextraticketstotheMidwestRegionalSweet16gameinthemen’sNCAAbasketballtournament.Thetableshowsthewillingnesstopayofthefourpotentialbuyersinthemarketforatickettothegame.Whichofthefollowinggraphsrepresentsthemarketdemandcurve? a. b. c. d. Table7-9 Duringthelasttwodays,Chadpurchasedalattefromtwodifferentstores.ThetablebelowshowsChad’swillingnesstopayoneachdayandhisconsumersurplusfromeachpurchase.     […]

  31) Monopoly is allocatively inefficient because A) the price exceeds the marginal cost of the last unit produced. B) the opportunity cost exceeds the marginal cost of the last unit produced. C) the marginal cost exceeds the average cost for the last unit produced. D) lower costs could be achieved. E) the firm has no incentive to maximize profits. 32) Consider the efficiency of […]

  71) Suppose Statistics Canada reports that total income earned by Canadian barley farmers has declined as a result of a partial crop failure that has driven up the Canadian price of barley. We can conclude that the price elasticity of demand for barley in Canada is A) greater than one. B) exactly one. C) less than zero. D) less than one. E) exactly zero. […]

  61.The market equilibrium wage occurs where:    A. Demand intersects the marginal cost curve. B. Marginal physical product equals marginal revenue product. C. All workers and all employers are satisfied with the wage. D. Market demand for labor intersects the market supply of labor. 62.Which of the following is true about the equilibrium market wage for a particular industry?    A. All workers in this industry are satisfied with the wage. […]

      53) The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. If 5 concerts are put on, then the A) marginal external cost will be greater than the marginal social cost. B) marginal external cost will be greater than the marginal private cost. C) marginal external cost […]

    21) Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid losses after being insured. In other words, the automobile insurance market is subject to A) asymmetric information. B) market signaling. C) moral hazard. D) adverse selection.   22) If a fire insurance company requires firms buying fire insurance to install automatic […]

    61) Which of the following shifts the demand for money curve? i.change in the nominal interest rate ii.change in real GDP iii.change in the price level A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii   62) Which statement most accurately describes the effect financial technology has had on the demand for money in […]

    84) Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act? A) to encourage more people to become farmers B) to grant free land to farmers in order to produce crops that were particularly scarce C) to phase out the use of price ceilings in agricultural markets D) to phase out price floors and return to a […]

    21.People with less education are: A. more likely to be unemployed than people with more education. B. less likely to be unemployed than people with more education. C. just as likely to be unemployed than people with more education. D. not comparable to people with more education. 22.The labor force participation rate: A. is measured by the labor force divided by the working-age population. B. tells us what fraction […]

    20) Which of the following statements about the distribution of income in the United States is true? A) The United States has the most unequal distribution of income of any high-income country in the world. B) The United States has a more unequal distribution of income than Bolivia and Botswana. C) The distribution of income in the United States is fairly equal and […]