WorksheetsIB Economics Market Model-Efficiency
Total questions: 22
Worksheet time: 11mins
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
Economic efficiency occurs when ___________
Consumer surplus is greater than producer surplus
Producer surplus is greater than Consumer surplus
Total surplus is maximised
The government levies a tax on the good
When total surplus is reduced because of either under or overproduction, it is referred to as _______
Marginal cost
Market efficiency
Equilibrium
A deadweight loss
The war in Ukraine leads to a decrease in supply of fuel. Which of the following would happen?
Decrease in deadweight loss
Increase in deadweight loss
Increase in demand
Decrease in supply
The government introduces a new law to prevent the price of beef from rising. Which of the following would happen?
Increase in deadweight loss
Decrease in deadweight loss
Demand would increase
Demand would decrease
A cap is introduced on the number of taxi licenses. What happens in the market? (more than one answer)
Shortage of supply
Supply surplus
Decrease in price
Increase in price
A _________ is a legislated maximum price that sellers are allowed to charge in the market.
Equilibrium price
Price ceiling
Price floor
Deadweight loss
What is a price ceiling design to do?
Reduce deadweight loss
Keeps the price below the market clearing price
Maximise economic welfare
Keeps the price above the market clearing price
A price ceiling results in ________
A surplus because Qs exceeds Qd
A shortage because Qd exceeds Qs
A shortage because Qs exceeds Qd
A surplus because Qd exceeds Qs
After the price ceiling is introduced, what is the effect?
Producers sell less at a lower price
Producers sell more at a lower price
Decrease in economic welfare
Increase in economic welfare
A _______ is a legislated minimum price that sellers are allowed to charge in the market
Price floor
Price ceiling
Equilibrium price
Surplus
Price ceilings are created to benefit ______
Both producers and consumers
Producers
Consumers or producers, it depends on the situation
Consumers
Price floors are created to benefit ______
Both producers and consumers
Producers
Consumers or producers, it depends on the situation
Consumers
Using the diagram, a price floor might do what?
Consumer surplus and producer surplus decrease by the same amount
Consumer surplus increase by more than producer surplus decreases, causing a deadweight loss.
Consumer surplus decreases by more than producer surplus increases, causing a deadweight loss.
Consumer surplus and producer surplus increase by the same amount
