Market efficiency Y11 Economics

Producing the goods that society wants at the lower possible cost is the concept of ________

• Efficiency

• Consumer surplus

• Producer surplus

• PPF

The demand curve is also known as _________

• Marginal benefit

• Marginal cost

• PPF

• Consumer surplus

The diagram shows the price and quantity of pizzas. Calculate the total value of the 5 pizzas.

• $40

• $50

• $12

• Not enough information

The supply curve is also known as ________

• Marginal benefit

• Consumer surplus

• Producer surplus

• Marginal cost

Consumer surplus is ________

• The difference between what a producer is prepared to sell at and what they actually sell at

• Total benefits - total costs

• The difference between what a consumer is prepared to pay and what they actually pay

• Total costs - total benefits

Producer surplus is ________

• The difference between what a producer is prepared to sell at and what they actually sell at

• Total benefits - total costs

• The difference between what a consumer is prepared to pay and what they actually pay

• Total costs - total benefits

The diagram shows the demand for pizza. What is the consumer surplus on the first pizza?

• $5

• $12

• $3

• $4

The diagram shows the demand for pizza. What is the consumer surplus on the last pizza?

• $0

• $12

• $3

• $4

When market price falls, what happens?

• Consumer surplus decreases

• Consumer surplus increases

• Demand shifts right

• Demand shifts left

What happens to marginal cost as production increases?

• Increases at a diminishing rate

• Increases at a decreasing rate

• Impossible to say

• Decreases at a constant rate