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WorksheetsEIA1002 E-learning Quiz
Total questions: 21
Worksheet time: 11mins
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.
With international trade, a country will export tires. Prior to international trade, the quantity of tires produced in the country ________ the quantity of tires consumed in the country.
must be more than
might be more than, less than, or equal to
must be less than
must equal
Externalities:
are not reflected in market prices, so they can be a source of economic inefficiency.
do become reflected in market prices, so they can be a source of economic inefficiency.
are not reflected in market prices, so they do not adversely affect economic efficiency.
may or may not become reflected in market prices, but do not have an impact on economic efficiency in either event.
do become reflected in market prices, so they do not adversely affect economic efficiency.
Which of the following is a negative externality connected to automobile transportation?
Driving faster than the 65 mph speed limit is not allowed, even though individuals are able to do it, and many want to.
In an accident, a person who chooses not to wear a seat belt becomes an object moving around the inside of the car, possibly hitting other, belted-in, passengers with lethal force.
Gasoline is taxed on a per-gallon basis.
Gasoline is imported, and thus increases the trade deficit.
While stuck in traffic, you have a chance to listen to your favorite CD, which you haven't had the time to do in other places.
Which of the following is a public good?
Telephone service
Broadcast TV
A daily newspaper
The Red Cross
all of the above
Corn flakes are:
a rival good because many firms produce them.
a rival good because if another person wants some corn flakes society has to use additional resources to produce corn flakes for that person.
a non-rival good because there are only a few firms in the industry.
a non-rival good because even if another person wants some corn flakes so many corn flakes are produced that no additional resources are used to satisfy this new customer's needs.
a public good.
Access to the movie "Casablanca," showing in a half-empty theater, is:
a public good because individuals watch movies together.
a public good only if the theater is run by the government.
not a public good because it is a rival good.
not a public good because it is an exclusive good.
not a public good because it is both a rival good and an exclusive good.
Access to the movie "Casablanca," showing in a half-empty theater, is
a rival good because other movies are available in other theaters.
a rival good because it is used up as it is seen. It is not enjoyed as a whole all at once.
a rival good because individuals were willing and able to pay a positive amount to get in to the theater.
a non-rival good because no other movie is available in that theater.
a non-rival good because when a new viewer enters the theater, there is not less of the movie for everybody else.
A lighthouse is a public good:
because it doesn't cost any more to light the way for 105 ships than it does to light the way for 104 ships, but for no other reason.
because there is no way to prevent those who haven't contributed to the lighthouse from seeing better because of it, but for no other reason.
because the government produces it, and for no other reason.
for the reasons in A and B together.
for the reasons in A, B, and C together.
The government provides public education because:
public education is a public good.
public education is non-rival and nonexclusive.
private education is rival and exclusive.
public education combats the negative externalities of private education.
public education provides positive externalities.
The shutdown decision can be restated in terms of producer surplus by saying that a firm should produce in the short run as long as:
revenue exceeds producer surplus.
producer surplus is positive.
producer surplus exceeds fixed cost.
producer surplus exceeds variable cost.
profit and producer surplus are equal.
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.
