Microeconomics, Market Efficiency

question

If low prices are the result of government intervention then:

answer

overall consumer surplus can increase or decrease, depending on how much the price is forced to decrease and how much the quantity supplied falls

question

Sam is willing to sell his used car for $3000, but Bill pays $3500 for it. Sam will receive a ____ surplus of $500

answer

producer

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Deadweight loss

answer

the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium

question

Consumer surplus is measured in:

answer

dollars

question

if low prices are the result of government intervention then:

answer

1. some consumers will be worse off because they are unable to get access to goods or services
2. overall consumer surplus can increase or decrease
3. some consumers will be better off because they can buy a good or service at a lower price

question

production possibilities frontier

answer

shows how much of two goods an economy can produce when it is using all available resources as efficiently as possible

question

a price floor is

answer

the minimum legal price at which a good, service or resource can be sold

question

total surplus

answer

is maximized when markets are in equilibrium

question

consumer surplus

answer

the difference between the maximum price consumers are willing and able to pay for a good or service, vs the price they actually pay

question

allocative efficiency

answer

producing the goods and services that consumers most want in such a way that the marginal benefit equals the marginal cost

question

producer surplus

answer

the difference between the price producers receive for a good or service, and the minimum price they are willing and able to accept

question

the revenue collected from a tax equals:

answer

the tax times the quantity traded

1 of 12

question

If low prices are the result of government intervention then:

answer

overall consumer surplus can increase or decrease, depending on how much the price is forced to decrease and how much the quantity supplied falls

question

Sam is willing to sell his used car for $3000, but Bill pays $3500 for it. Sam will receive a ____ surplus of $500

answer

producer

question

Deadweight loss

answer

the value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium

question

Consumer surplus is measured in:

answer

dollars

question

if low prices are the result of government intervention then:

answer

question

production possibilities frontier

answer

shows how much of two goods an economy can produce when it is using all available resources as efficiently as possible

question

a price floor is

answer

the minimum legal price at which a good, service or resource can be sold

question

total surplus

answer

is maximized when markets are in equilibrium

question

consumer surplus

answer

the difference between the maximum price consumers are willing and able to pay for a good or service, vs the price they actually pay

question

allocative efficiency

answer

producing the goods and services that consumers most want in such a way that the marginal benefit equals the marginal cost

question

producer surplus

answer

the difference between the price producers receive for a good or service, and the minimum price they are willing and able to accept

question

the revenue collected from a tax equals:

answer

the tax times the quantity traded

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