WorksheetsCBA Quiz review finale #1
Total questions: 20
Worksheet time: 10mins
What does welfare economics study?
Inflation trends
Allocation of resources and economic well-being
International trade policies
Fiscal policies
What does consumer surplus measure?
Seller benefits
The buyer's willingness to pay minus the amount paid
Total profit of the seller
Equity in market allocation
What does producer surplus represents?
Cost of production for the seller
The amount a seller is paid minus there costs
Total market revenue
Equilibrium price
What is the area below the demand curve and above the price called?
Producer surplus
Consumer surplus
Market equilibrium
Efficiency zone
In welfare economics, what is maximized at market equilibrium?
Only consumer surplus
Only produces surplus
Total welfare of buyers and sellers
Equity
What is the key property of market efficiency?
Maximizing consumer surplus only
Allocating resources fairness
Maximizing total surplus
Minimizing costs of production
Which term describes the fairness of resource distribution?
Efficiency
Equity
Surplus
Welfare
What is the invisible hand of the market?
Government intervention
Forces leading to resource efficiency
Monopoly power
Trade policies
If a buyer pays less than their willingness to pay, what is created?
A. Equity
B. Producer surplus
C. Consumer surplus
D. Demand curve
What can market power lead to?
Perfect competition
Market inefficiency
Maximizing of surplus
Efficient allocation
What does total surplus equal?
Consumer surplus minus producer surplus
Value to buyers minus cost to sellers
Value to sellers plus cost to buyers
Demand minus supply
What does a demand curve show?
Seller's costs
Quantities buyers are willing to purchase at different prices
Market equilibrium price only
Total producer surplus
What is the term for the maximum amount of a buyer is willing to pay for a good?
Market price
Willingness to pay
Consumer surplus
Equilibrium price
What happens when the equilibrium price changes?
Consumer surplus and producer surplus remain the same
Consumer surplus and producer surplus are affected
Only consumer surplus changes
Only producer surplus changes
What is the area below the price and above the supply curve called?
Total surplus
Producer surplus
Consumer surplus
Dead weight loss
Which concept allocates goods to the buyers who value them most?
Consumer surplus
Market efficiency
Equity
Dead weight loss
What does externality refer to?
Inefficiencies caused by imperfect competition
Impact of market outcomes on individuals not involved in the market
Equilibrium price changes
Monopoly pricing
What is the french term for a policy of non-intervention in markets?
Laissez-faire
Bon appètit
Avant-garde
Haute couture
How is producer surplus calculated?
Price paid minus willingness to pay
Willingness to pay minus price received
Amount received minus cost to seller
Total market demand minus supply
What is the effect of market power?
Improves equity and efficiency
Reduces surplus for buyers and sellers
Archives maximum welfare
Ensures equilibrium quantity
