EIA1002 E-learning Quiz

The horizontal summation of the demands of each consumer at different price levels is called:

• the market demand curve.

• the price elasticity of market demand.

• speculative demand.

• consumer surplus.

The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called:

• producer surplus

• consumer surplus.

• cost benefit analysis.

• net utility.

The value of consumer surplus when price is $4 equals:

• $21

• $24

• $45

• $41

The total weekly expenditure on pizza is

• $1500

• $2000

• $3000

• $3500

The consumer surplus derived from pizza consumption is

• $1500

• $2000

• $2500

• $3000

The aggregate demand for good X is Q = 20 - P. If the price rises from P = $4 to P = $5, what is the change in consumer surplus?

• $5.50

• $9.50

• $15.50

• $20.50

Producer surplus in the figure equals the area:

• below market price and above the supply curve.

• below market demand and above market price.

• between market supply and market demand, from zero to the equilibrium quantity.

• below the supply curve, from zero to the equilibrium quantity.

In a supply-and-demand graph, producer surplus can be pictured as the:

• vertical intercept of the supply curve.

• area between the demand curve and the supply curve to the left of equilibrium output.

• area under the supply curve to the left of equilibrium output

• area under the demand curve to the left of equilibrium output.

• area between the equilibrium price line and the supply curve to the left of equilibrium output.

International trade arises from

• absolute advantage.

• comparative advantage.

• business advantage

• the advantage of execution.

• geographical advantage

The United States has a comparative advantage in producing airplanes if

• it can produce them at a lower opportunity cost than can other nations.

• it can produce them at a lower dollar cost than can other nations.

• it can produce a larger quantity than can other nations.

• it has a larger quantity of skilled workers than do other nations.