WorksheetsEconomics #5
Total questions: 12
Worksheet time: 6mins
Competitive markets do NOT
allocate resources effectively
create one-way information flows
convey to suppliers the value consumers place on the good
What does the price reveal to consumer in competitive markets?
the minimum willingness to supply by the most efficient producer
the value placed on the good by the highest bidder
the oppurtunity cost of supplying that good
The competitive market equilibrium maximizes
deadweight loss
government revenue
producer surplus
total surplus
Consumer surplus equals
oppurtuntiy cost minus market prce
equilibrium price minus market price
market price minus oppurtunity cost
willingness to pay minus market price
At any point along the demand curve, the height measures
sellers willingness to supply
buyer's willingness to pay
average revenue
consumer surplus
Where is consumer surplus located on a price-quantity graph?
beliw the market price and to the left of the demand curve
above the market price and to the right of the demand curve
beliw the market price and to the right of the demand curve
above th market price and below the demand curve
Which of the following situations results in positive producer surplus?
quanity supplied exceeds quantity demanded
suppliers willingness to supply exceeds buyers willigness to pay
marginal costs exceeds market price
market price exceeds oppurtunity cost
On a price-quantity graphproducer surplus is the area
beliw the market price and to the right of the supply curve
beliw the market price and above the supply curve
above the market price and above the supply curve
below the market price
How do market participants determine the value each consumer places on the good in competitive markets?
collective altruism
government intervention
price signals
field surveys
What is total surplus?
consumer surplus plus producer surplus
producer surplus minus consumer surplus
consumer surplus minus producer surplus
total area below the demand curve
The market price for a TV is $400. If Bob's benefit is $100, then his willingness to pay is CLOSEST to
$300
$400
$100
$500
At a quantity less than the equilibrium quantity, it is MOST likely that
value to consumers exceeds producer's cost
consumer surplus is maximimed
willingness to pay is less than willingnesss to supply
deadweight loss is minimized
