FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Efficiency and Fairness of Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Multiple Choice

Review LaterAdd Note

Review Later

If a landlord will rent an apartment only to married couples over 30 years old,the landlord is allocating resources using a ________ allocation method.

A) majority rule
B) market price
C) contest
D) personal characteristics
E) command

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

The "equality of opportunity" idea of fairness claims

A) a society should make the poorest as well off as possible.
B) the results and the rules should both be fair.
C) it's not fair if the rules aren't fair.
D) private property can be transferred under government order.
E) only a first-come, first-served system of allocating resources is fair.

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

The concept of "the invisible hand" suggests that to attain efficiency,the government should

Which of the following is true? When there are no externalities,public goods,common resources,taxes or subsidies,then i.allocative efficiency occurs when marginal benefit exceeds marginal cost by as much as possible. ii.an a competitive equilibrium,resource allocation is efficient. iii.fair rules require income transfers from the rich to the poor.

When the price rises and the supply curve does not shift,the firms' producer surplus ________.When the price falls and the supply curve does not shift,the firms' producer surplus ________.

Suppose the price of a scooter is $200 and Cora Lee is willing to pay $250.Cora Lee's

-In the figure above,if the market price is $12,then the total consumer surplus is

Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50.What is the marginal benefit Samantha gained from the hamburger?

When less than the efficient amount of a good is produced,how does the marginal benefit of the last unit produced compare to its marginal cost?

Allocative efficiency refers to

Production efficiency requires that

Jason wants to hire Maria to tutor him in economics.Jason is willing to pay $30 for the first hour of tutoring,$25 for the second,$20 for the third,$15 for the fourth,and $10 for the fifth.Maria has an opportunity cost per hour of $6 for the first,$9 for the second,$12 for the third,$15 for the fourth,and $18 for the fifth.The initial equilibrium price for tutoring is $15 an hour and hence Maria tutors Jason for 4 hours.Now,Maria realizes that she is the only economics tutor because all the other tutors have graduated.Because she is the only tutor,she has a monopoly and,as a monopolist,Maria decides to charge a price of $25 instead of $15 an hour. a.At the price of $25 an hour,how many hours will Maria tutor Jason? b.At the initial equilibrium price of $15 an hour,what was Jason's total consumer surplus and Maria's total producer surplus? c.At the price of $25 an hour,how many hours will Jason hire Maria to tutor him? What is Jason's total consumer surplus and Maria's total producer surplus? d.How does the sum of Jason's consumer surplus plus Maria's producer surplus compare at the initial equilibrium price of $15 an hour (part b)and at the new price of $25 an hour (part c)? Comment on any difference.

Ben's cost of making an additional rocking chair is $75.

Jake just bought a new hockey stick.When he was leaving the shop,he thought that he such a great deal and would have paid $50 more dollars for the stick.Jake received

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

-In the figure above,when 2,000 pizzas are produced,the marginal benefit of a pizza ________ its marginal cost,which means ________ pizza is being produced.

At a competitive market equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities, i.consumer surplus is minimized. ii.marginal cost equals marginal benefit. iii.resources are efficiently used. iv.producer surplus is minimized.

Wal-Mart has a limited number of "Black Friday" (the day-after Thanksgiving Day) special items on sale at prices well below their typical price.Wal-Mart opens at 10 PM on Thanksgiving.Wal-Mart is using a ________ allocation method for these items.

If the price is greater than the marginal cost of producing a good,the seller has

Value is