
Consumers, Producers, and the Efficiency of Markets - Market

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Other
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University
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Hard

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20 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?
profits and costs to firms
consumer and producer surplus
the equilibrium price and quantity
incomes of and prices paid by buyers
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Economists typically measure efficiency using
the price paid by buyers.
the quantity supplied by sellers.
total surplus
profits to firms.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following equations is not valid?
Consumer surplus = Value to buyers - Amount paid by buyers
Producer surplus = Amount received by sellers - Cost to sellers
Total surplus = Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers
Total surplus = Value to sellers - Cost to sellers
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
We can say that the allocation of resources is efficient if
producer surplus is maximized.
consumer surplus is maximized.
total surplus is maximized.
sellers’ costs are minimized.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Efficiency in a market is achieved when
a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs.
the sum of producer surplus and consumer surplus is maximized.
all firms are producing the good at the same low cost per unit.
no buyer is willing to pay more than the equilibrium price for any unit of the good.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
At the equilibrium price of a good, the good will be purchased by those buyers who
value the good more than price.
value the good less than price.
have the money to buy the good.
consider the good a necessity.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The distinction between efficiency and equality can be described as follows:
Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers.
Efficiency refers to minimizing the price paid by buyers;
equality refers to maximizing the gains from trade among buyers and sellers
Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost.
Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.
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