Essentialsof Economics 7th Edition Gregory Mankiw
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Consumers,Producers,and the Efficiency of Markets
Multiple Choice – Section 00: Introduction
1. Which of the following statements is correct?
a. Buyers always want to pay less and sellers always want to be paid more.
b. Buyers always want to pay less and sellers always want to be paid less.
c. Buyers always want to pay more and sellers always want to be paid more.
d. Buyers always want to pay more and sellers always want to be paid less.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
2. Welfare economics is the study of how
a. the allocation of resources affects economic well-being.
b. a price ceiling compares to a price floor.
c. the government helps poor people.
d. a consumer’s optimal choice affects her demand curve.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS:
DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
3. Welfare economics is the study of
a. taxes and subsidies.
b. how technology is best put to use in the production of goods and services.
c. government welfare programs for needy people.
d. how the allocation of resources affects economic well-being.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
4. Welfare economics is the study of
a. the well-being of less fortunate people.
b. welfare programs in the United States.
c. how the allocation of resources affects economic well-being.
d. the effect of income redistribution on work effort.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
5. The study of how the allocation of resources affects economic well-being is called
a. consumer economics.
b. macroeconomics.
c. willingness-to-pay economics.
d. welfare economics.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
6. An example of positive analysis is studying
a. how market forces produce equilibrium.
b. whether equilibrium outcomes are fair.
c. whether equilibrium outcomes are socially desirable.
d. if income distributions are fair.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
7. An example of normative analysis is studying
a. how market forces produce equilibrium.
b. surpluses and shortages.
c. whether equilibrium outcomes are socially desirable.
d. income distributions.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Knowledge
8. Which of the Ten Principles of Economics does welfare economics explain more fully?
a. The cost of something is what you give up to get it.
b. Markets are usually a good way to organize economic activity.
c. Trade can make everyone better off.
d. A country’s standard of living depends on its ability to produce goods and services.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
9. Which of the Ten Principles of Economics does welfare economics explain more fully?
a. The cost of something is what you give up to get it.
b. Rational people think at the margin.
c. Markets are usually a good way to organize economic activity.
d. People respond to incentives.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
10. One of the basic principles of economics is that markets are usually a good way to organize economic activity This principle is explained by the study of
a. factor markets.
b. energy markets.
c. welfare economics.
d. labor economics.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
11. A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it
a. maximizes both the total revenue for firms and the quantity supplied of the product.
b. maximizes the combined welfare of buyers and sellers.
c. minimizes costs and maximizes output.
d. minimizes the level of welfare payments.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
12. The particular price that results in quantity supplied being equal to quantity demanded is the best price because it
a. maximizes costs of the seller.
b. maximizes tax revenue for the government.
c. maximizes the combined welfare of buyers and sellers.
d. minimizes the expenditure of buyers.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
13. Welfare economics explains which of the following in the market for televisions?
a. The government sets the price of televisions; firms respond to the price by producing a specific level of output.
b. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price.
c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
d. The market equilibrium price for televisions maximizes consumer welfare and minimizes producer profit.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.29 - LO: 7-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis
KEYWORDS: BLOOM'S: Comprehension
NOTES: r
Multiple Choice – Section 01: Consumer Surplus
1. The maximum price that a buyer will pay for a good is called
a. consumer surplus.
b. willingness to pay.
c. equilibrium.
d. efficiency.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
2. Suppose Larry, Moe, and Curly are bidding in an auction for a mint-condition video of Charlie Chaplin's first movie. Each has in mind a maximum amount that he will bid. This maximum is called
a. a resistance price.
b. willingness to pay.
c. consumer surplus.
d. producer surplus.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Knowledge
3. Suppose Raymond and Victoria attend a charity benefit and participate in a silent auction Each has in mind a maximum amount that he or she will bid for an oil painting by a locally famous artist This maximum is called
a. deadweight loss.
b. willingness to pay.
c. consumer surplus.
d. producer surplus.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Knowledge
4. Willingness to pay
a. measures the value that a buyer places on a good.
b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept.
c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept.
d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Knowledge
5. A consumer's willingness to pay directly measures
a. the extent to which advertising and other external forces have influenced the consumer’s preferences.
b. the cost of a good to the buyer.
c. how much a buyer values a good.
d. consumer surplus.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Comprehension
6. When a buyer’s willingness to pay for a good is equal to the price of the good, the
a. buyer’s consumer surplus for that good is maximized.
b. buyer will buy as much of the good as the buyer’s budget allows.
c. price of the good exceeds the value that the buyer places on the good.
d. buyer is indifferent between buying the good and not buying it.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS:
DISC: Consumer Theory
KEYWORDS: BLOOM'S: Comprehension
7. In which of the following circumstances would a buyer be indifferent about buying a good?
a. The amount of consumer surplus the buyer would experience as a result of buying the good is zero.
b. The price of the good is equal to the buyer’s willingness to pay for the good.
c. The price of the good is equal to the value the buyer places on the good.
d. All of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Comprehension
8. A demand curve reflects each of the following except the
a. willingness to pay of all buyers in the market.
b. value each buyer in the market places on the good.
c. highest price buyers are willing to pay for each quantity.
d. ability of buyers to obtain the quantity they desire.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Supply and Demand
KEYWORDS: BLOOM'S: Comprehension
9. Consumer surplus
a. is closely related to the supply curve for a product.
b. is represented by a rectangle on a supply-demand graph when the demand curve is a straight, downward- sloping line.
c. is measured using the demand curve for a product.
d. does not reflect economic well-being in most markets.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
10. Consumer surplus is
a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
b. the amount a buyer is willing to pay for a good minus the cost of producing the good.
c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
d. a buyer's willingness to pay for a good plus the price of the good.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Knowledge
11. Consumer surplus
a. is the amount a buyer pays for a good minus the amount the buyer is willing to pay for it.
b. is represented on a supply-demand graph by the area below the price and above the demand curve.
c. measures the benefit sellers receive from participating in a market.
d. measures the benefit buyers receive from participating in a market.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
12. Consumer surplus
a. is the amount of a good that a consumer can buy at a price below equilibrium price.
b. is the amount a consumer is willing to pay minus the amount the consumer actually pays.
c. is the number of consumers who are excluded from a market because of scarcity.
d. measures how much a seller values a good.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Knowledge
13. Consumer surplus is the
a. amount of a good consumers get without paying anything.
b. amount a consumer pays minus the amount the consumer is willing to pay.
c. amount a consumer is willing to pay minus the amount the consumer actually pays.
d. value of a good to a consumer.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Knowledge
14. Consumer surplus is equal to the
a. Value to buyers - Amount paid by buyers.
b. Amount paid by buyers - Costs of sellers.
c. Value to buyers - Costs of sellers.
d. Value to buyers - Willingness to pay of buyers.
ANSWER: a
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Knowledge
15. On a graph, the area below a demand curve and above the price measures
a. producer surplus.
b. consumer surplus.
c. deadweight loss.
d. willingness to pay.
ANSWER: b
POINTS: 1
DIFFICULTY:
Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
16. On a graph, consumer surplus is represented by the area
a. between the demand and supply curves.
b. below the demand curve and above price.
c. below the price and above the supply curve.
d. below the demand curve and to the right of equilibrium price.
ANSWER: b
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
17. Consumer surplus in a market can be represented by the
a. area below the demand curve and above the price.
b. distance from the demand curve to the horizontal axis.
c. distance from the demand curve to the vertical axis.
d. area below the demand curve and above the horizontal axis.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
18. Consumer surplus is
a. a concept that helps us make normative statements about the desirability of market outcomes.
b. represented on a graph by the area below the demand curve and above the price.
c. a good measure of economic welfare if buyers' preferences are the primary concern.
d. All of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS:
DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Comprehension
19. In a market, the marginal buyer is the buyer
a. whose willingness to pay is higher than that of all other buyers and potential buyers.
b. whose willingness to pay is lower than that of all other buyers and potential buyers.
c. who is willing to buy exactly one unit of the good.
d. who would be the first to leave the market if the price were any higher.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Knowledge
Table 7-1
Buyer Willingness To Pay
20. Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product?
a. Calvin
b. Calvin and Sam
c. Calvin, Sam, and Andrew
d. Calvin, Sam, Andrew, and Lori
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Application
NOTES: r
21. Refer to Table 7-1 If the price of the product is $130, then who would be willing to purchase the product?
a. Calvin
b. Calvin and Sam
c. Calvin, Sam, and Andrew
d. Calvin, Sam, Andrew, and Lori
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Application
NOTES: r
22. Refer to Table 7-1 If the price of the product is $90, then who would be willing to purchase the product?
a. Calvin
b. Calvin and Sam
c. Calvin, Sam, and Andrew
d. Calvin, Sam, Andrew, and Lori
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Application
NOTES: r
23. Refer to Table 7-1 If the price of the product is $122, then the total consumer surplus is
a. $28.
b. $41.
c. $43.
d. $405.
ANSWER: b
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: r
24. Refer to Table 7-1 If price of the product is $135, then the total consumer surplus is
a $-50.
b. $-35.
c $15.
d. $150.
ANSWER: c
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: r
25. Refer to Table 7-1. If the market price is $105,
a. Calvin’s consumer surplus is $45 and total consumer surplus is $85.
b. Sam’s consumer surplus is $30 and total consumer surplus is $90.
c. Andrew’s consumer surplus is $15 and total consumer surplus is $67.50.
d. Lori’s consumer surplus is -$2 and total consumer surplus is $100.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: n
Buyer Willingness To Pay
a.
b. Megan, Mallory
c. David, Laura and Megan
d. David and Laura
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Application
27. Refer to Table 7-2 Which of the following is not true?
a. At a price of $9.00, no buyer is willing to purchase Vanilla Coke.
b. At a price of $5.50, Megan is indifferent between buying a case of Vanilla Coke and not buying one.
c. At a price of $4.00, total consumer surplus in the market will be $9.00.
d. All of the above are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Consumer Theory
KEYWORDS: BLOOM'S: Application
28. Refer to Table 7-2 If the market price is $5.50, the consumer surplus in the market will be a $3.00.
b. $4.50.
c. $15.50.
d. $21.00.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
29. Refer to Table 7-2 If the market price is $3.80,
a. David’s consumer surplus is $4.70 and total consumer surplus for the five individuals is $9.50.
b. Megan’s consumer surplus is $1.70 and total consumer surplus for the five individuals is $9.80.
c. David, Laura, and Megan will be the only buyers of Vanilla Coke.
d. the demand curve for Vanilla Coke, taking the five individuals into account, is horizontal.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
Table 7-3
The only four consumers in a market have the following willingness to pay for a good:
Buyer
30. Refer to Table 7-3. If the market price for the good is $20, who will purchase the good?
a. Ming-la only
b. Carlos and Quilana only
c. Quilana and Wilbur only
d. Quilana, Wilbur, and Ming-la only
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Theory
KEYWORDS: BLOOM'S: Application
31. Refer to Table 7-3. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the good will sell for
a. $15 or slightly less.
b. $25 or slightly more.
c. $35 or slightly more.
d. $45 or slightly less.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
32. Refer to Table 7-3. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the consumer surplus will be
a. $0 or slightly more.
b. $10 or slightly less.
c. $30 or slightly more.
d. $45 or slightly less.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
33. Refer to Table 7-3. If the price is $20, then consumer surplus in the market is
a. $20, and Wilbur and Ming-la purchase the good.
b. $45, and Carlos and Quilana purchase the good.
c. $45, and Quilana, Wilbur, and Ming-la purchase the good.
d. $55, and Carlos, Wilbur, and Ming-la purchase the good.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
34. Refer to Table 7-3. Who experiences the largest loss of consumer surplus when the price of the good increases from $20 to $22?
a. Quilana
b. Wilbur
c. Ming-la
d. All three buyers experience the same loss of consumer surplus.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs St Louis Cardinal’s baseball game at Wrigley Field.
Buyer Willingness to Pay
Jennifer $10
Bryce $15
Dan $20
David $25
Ken $50
Lisa $60
35. Refer to Table 7-4. If you have a ticket that you sell to the group in an auction, what will be the selling price?
a. slightly more than $20.
b. slightly more than $25.
c. slightly more than $50.
d. slightly more than $60.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
NOTES: r
36. Refer to Table 7-4. If you have a ticket that you sell to the group in an auction, who will buy the ticket?
a. Dan
b. David
c. Ken
d. Lisa
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
37. Refer to Table 7-4. If tickets sell for $40 each, then what is the total consumer surplus in the market?
a. $90.
b. $30.
c. $70.
d. $110.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
NOTES: r
38. Refer to Table 7-4. If tickets sell for $25 each, then what is the total consumer surplus in the market?
a $25
b. $35
c $60
d. $110
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis
Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
39. Refer to Table 7-4. If you have two (essentially) identical tickets that you sell to the group in an auction, what will be the selling price for each ticket?
a. $21
b. $26
c. $51
d. $61
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.
40. Refer to Table 7-5. If the market price of an orange is $0.90, then the market quantity of oranges demanded per day is
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Supply and Demand Demand
KEYWORDS: BLOOM'S: Analysis
NOTES: r
41. Refer to Table 7-5. If the market price of an orange is $0.70, then the market quantity of oranges demanded per day is
a. 5.
b. 6.
c. 4.
d. 7.
ANSWER: b
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Supply and Demand Demand
KEYWORDS: BLOOM'S: Analysis
NOTES: r
42. Refer to Table 7-5. The market quantity of oranges demanded per day is exactly 7 if the price of an orange, P, satisfies
a. $0.60 < P < $0.75.
b. $0.60 < P < $2.00.
c $0.25 < P < $0.75.
d. $0.25 < P < $0.60.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Supply and Demand Demand
KEYWORDS: BLOOM'S: Analysis
NOTES: r
43. Refer to Table 7-5. If the market price of an orange is $0.65, then consumer surplus amounts to
a $3.90.
b. $6.75.
c $3.60.
d. $7.50.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
NOTES: r
44. Refer to Table 7-5. If the market price of an orange is $0.40, then
a. 6 oranges are demanded per day, and consumer surplus amounts to $4.95.
b. 6 oranges are demanded per day, and consumer surplus amounts to $5.10.
c. 7 oranges are demanded per day, and consumer surplus amounts to $5.30.
d. 7 oranges are demanded per day, and consumer surplus amounts to $5.15.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
NOTES: r
45. Refer to Table 7-5. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus
a. increases by $0.75.
b. decreases by $0.95.
c. decreases by $0.75.
d. decreases by $1.00.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: r
46. Refer to Table 7-5. If the market price of an orange increases from $0.70 to $1.40, then consumer surplus
a. increases by $2.60.
b. decreases by $0.70.
c. decreases by $2.50.
d. decreases by $2.60.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: r
47. Refer to Table 7-5. Who experiences the largest loss of consumer surplus when the price of an orange increases from $0.70 to $1.40?
a. Allison
b. Bob
c. Charisse
d. All three individuals experience the same loss of consumer surplus.
ANSWER: a
POINTS: 1
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LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
48. Refer to Table 7-5. Who experiences the largest gain in consumer surplus when the price of an orange decreases from $1.05 to $0.75?
a. Allison
b. Bob
c. Charisse
d. Allison and Bob experience the same gain in consumer surplus, and Charisse’s gain is zero.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: r
49. Refer to Table 7-5. Which of the following statements is correct?
a. Neither Bob’s consumer surplus nor Charisse’s consumer surplus can exceed Allison’s consumer surplus, for any price of an orange.
b. All three individuals will buy at least one orange only if the price of an orange is less than $0.25.
c. If the price of an orange is $0.60, then consumer surplus is $4.90.
d. All of the above are correct.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
Table 7-6
For each of three potential buyers of apples, the table displays the willingness to pay for the first three apples of the day Assume Xavier, Yadier, and Zavi are the only three buyers of apples, and only three apples can be supplied per day.
50. Refer to Table 7-6. If the market price of an apple is $1.40, then the market quantity of apples demanded per day is a.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Supply and Demand Demand
KEYWORDS: BLOOM'S: Analysis
51. Refer to Table 7-6. If the market price of an apple is $1.40, then consumer surplus amounts to
a $0.60.
b. $1.20.
c $1.40.
d. $3.40
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
52. Refer to Table 7-6. If the market price of an apple increases from $1.40 to $1.60, then consumer surplus
a. decreases by $0.15.
b. decreases by $0.30.
c. decreases by $0.45.
d. increases by $0.15.
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
53. Refer to Table 7-7. You have an extra ticket to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game You hold an auction to sell the ticket Who makes the winning bid, and what does he offer to pay for the ticket?
a. Michael; $501
b. Michael; more than $400 but less than or equal to $500
c. Earvin; $400
d. Earvin; more than $350 but less than or equal to $400
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
54. Refer to Table 7-7. You have an extra ticket to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You hold an auction to sell the ticket. Michael bids $410 for the ticket, and you sell him the ticket. What is his consumer surplus?
a. $410
b. $90
c. $10
d. 0
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
55. Refer to Table 7-7. You have two essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game You hold an auction to sell the two tickets Who makes the winning bids, and what do they offer to pay for the tickets?
a. Michael and Earvin; more than $350 but less than or equal to $400
b. Michael and Earvin; more than $400 but less than or equal to $500
c. Earvin and Larry; more than $300 but less than or equal to $350
d. Larry and Charles; less than $300
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
56. Refer to Table 7-7. You have two essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You hold an auction to sell the two tickets. Michael and Earvin each offer to pay $360 for a ticket, and you sell them the two tickets. What is the total consumer surplus in the market?
a. $720
b. $180
c $140
d. $40
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
57. Refer to Table 7-7. You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game You offer to sell the tickets for $400 How many tickets do you sell, and what is the total consumer surplus in the market?
a. one ticket; $100
b. two tickets; $100
c. two tickets; $0
d. three tickets; $0
ANSWER: b
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
58. Refer to Table 7-7. You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You offer to sell the tickets for $325. How many tickets do you sell, and what is the total consumer surplus in the market?
a. one ticket; $175
b. two tickets; $225
c. three tickets; $225
d. three tickets; $275
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
59. Refer to Table 7-7. You are selling extra tickets to the Midwest Regional Sweet 16 game in the men’s NCAA basketball tournament The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game Which of the following graphs represents the market demand curve?
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
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TOPICS:
DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
Table 7-9
During the last two days, Chad purchased a latte from two different stores The table below shows Chad’s willingness to pay on each day and his consumer surplus from each purchase.
Chad’s Willingness to Pay Chad’s Consumer Surplus
60. Refer to Table 7-9. The price that Chad paid for a latte on the first day is
a $3.75.
b. $6.25.
c. $5.00.
d. $5.50.
ANSWER: a
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS:
DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: n
61. Refer to Table 7-9. The price that Chad paid for a latte on the second day is
a. $0.25 less than the amount he paid on the first day.
b. $1.00 less than the amount he paid on the first day.
c. $1.50 less than the amount he paid on the first day.
d. $0.50 less than the amount he paid on the first day.
ANSWER: d
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: n
Table 7-10
The only four consumers in a market have the following willingness to pay for a good:
Buyer Willingness to Pay
Ashleigh $12
Barb $15
Carolyn $19
Danita $27
62. Refer to Table 7-10. If the market price for the good is $20, who will purchase the good?
a. Danita only
b. Carolyn and Danita only
c. Ashleigh, Barb, and Carolyn only
d. All four buyers would purchase the good.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
63. Refer to Table 7-10. If there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the good will sell for
a. $12 or slightly less
b. $15 or slightly more
c. $19 or slightly more
d. $27 or slightly less
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
64. Refer to Table 7-10. If there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the consumer surplus will be
a. $0 or slightly more.
b. $3 or slightly less.
c. $4 or slightly more.
d. $8 or slightly less.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
65. You are offered a free ticket to see the Chicago Cubs play the Chicago White Sox at Wrigley Field Assume the ticket has no resale value Willie Nelson is performing on the same night, and his concert is your next-best alternative activity Tickets to see Willie Nelson cost $40 On any given day, you would be willing to pay up to $50to see and hear Willie Nelson perform Assume there are no other costs of seeing either event Based on this information, at a minimum, how much would you have to value seeing the Cubs play the White Sox to accept the ticket and go to the game?
a. $0
b. $10
c. $40
d. $50
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Analysis
66. A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes
a. increases, and the consumer surplus in the market for red wine increases.
b. increases, and the consumer surplus in the market for red wine decreases.
c. decreases, and the consumer surplus in the market for red wine increases.
d. decreases, and the consumer surplus in the market for red wine decreases.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
67. Bob purchases a book for $6, and his consumer surplus is $2 How much is Bob willing to pay for the book?
a $6.
b. $2.
c. $8.
d. $4.
ANSWER: c
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: n
68. Bob purchases a book, and his consumer surplus is $3 If Bob is willing to pay $8 for the book, then the price of the book must be
a. $3.
b. $8.
c. $5.
d. $11.
ANSWER: c
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
NOTES: n
69. Chuck would be willing to pay $20 to attend a dog show, but he buys a ticket for $15 Chuck values the dog show at
a. $5.
b. $15.
c. $20.
d. $35.
ANSWER: c
POINTS: 1
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
70. If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the
a. consumer has consumer surplus of $2 if he or she buys the good.
b. consumer does not purchase the good.
c. market is not a competitive market.
d. price of the good will fall due to market forces.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
71. If a consumer places a value of $20 on a particular good and if the price of the good is $25, then the
a. consumer has consumer surplus of $5 if he buys the good.
b. consumer does not purchase the good.
c. price of the good will rise due to market forces.
d. market is out of equilibrium.
ANSWER: b
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application
72. If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to
a. $4.
b. $16.
c. $20.
d. $36.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.30 - LO: 7-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Welfare Analysis Consumer Surplus
KEYWORDS: BLOOM'S: Application