Chapter 7 Choices
Chapter 7 Choices
1. a situation is efficient if e a. no change can help some people without hurting others e b. the gain for some people offsets the loss for others CC. the gain for some people more than offsets the loss to others ed. consumer surplus is maximized .e. producer surplus is maximized
1. A situation is efficient if a. no change can help some people without hurting others. b. the gain for some people offsets the loss for others. c. the gain for some people more than offsets the loss to others. d. consumer surplus is maximized. e. producer surplus is maximized
e 2. ASSume F bring 30 cookies into a class with 30 students. Which of the following situations is pareto efficient? ea./I give one cookie to each student e b. I give all 30 cookies to one student ec. I divide all of the cookies equally among the female students ed. let the best 15 students have 2 cookies each ●e. all of the above
2. Assume I bring 30 cookies into a class with 30 students. Which of the following situations is Pareto efficient? a. I give one cookie to each student. b. I give all 30 cookies to one student. c. I divide all of the cookies equally among the female students. d. I let the best 15 students have 2 cookies each. e. all of the above
93. If a market is not in equilibrium which of the following is always true? a. The quantity exchanged is below equilibrium quantity. ?b. The quantity eXchanged is above equilibrium quantity. e C. The price is above the equilibrium price .d. The price is below the equilibrium price ee. No transaction can be made that will benefit both a buyer and seller
3. If a market is not in equilibrium, which of the following is always true? a. The quantity exchanged is below equilibrium quantity. b. The quantity exchanged is above equilibrium quantity. c. The price is above the equilibrium price. d. The price is below the equilibrium price. e. No transaction can be made that will benefit both a buyer and seller
4. Total economic surplus is e a. the sum of all the individual economic surpluses gained by buyers and sellers in a market eb. the sum of producer and consumer surplus in a market e c. maximized at market equilibrium ed. a measure that can be used to determine efficiency ●e. all of the above
4. Total economic surplus is a. the sum of all the individual economic surpluses gained by buyers and sellers in a market. b. the sum of producer and consumer surplus in a market. c. maximized at market equilibrium. d. a measure that can be used to determine efficiency. e. all of the above
5. A price ceiling e a. prevents sellers trom charging less than a certain amount eb. leads to efficiency in the market .c. must be above equilibrium price to have an effect on the market ed. results in a loss in total economic surplus ●e. all of the above
5. A price ceiling a. prevents sellers from charging less than a certain amount. b. leads to efficiency in the market. c. must be above equilibrium price to have an effect on the market. d. results in a loss in total economic surplus. e. all of the above
.6. A policy that reduces total economic surplus a. changes who gets the largest slice of the pie s b. gives everyone a larger slice of the pie e C. decreases the size of the pie e d. redistributes a pie of equal size .e. makes society better off (improves the taste of the pie
6. A policy that reduces total economic surplus a. changes who gets the largest slice of the pie. b. gives everyone a larger slice of the pie. c. decreases the size of the pie. d. redistributes a pie of equal size. e. makes society better off (improves the taste of the pie)
●7./ Price subsidies will e a. increase consumer surplus, but not producer surplus b. increase producer surplus, but not consumer surplus S C. increase both consumer and producer surplus e d. decrease both consumer and producer surplus ee. vary in their effect, depending on the speciIc market
7. Price subsidies will a. increase consumer surplus, but not producer surplus. b. increase producer surplus, but not consumer surplus. c. increase both consumer and producer surplus. d. decrease both consumer and producer surplus. e. vary in their effect, depending on the specific market
●8. A price subsidy e a. guarantees that suppliers will receive at least a specified amount for their product e b guarantees that consumers will pay at least a specified amount for a product e C. increases total economic surplus e d. leads to economic efficiency ee. creates a shortage in the market
8. A price subsidy a. guarantees that suppliers will receive at least a specified amount for their product. b. guarantees that consumers will pay at least a specified amount for a product. c. increases total economic surplus. d. leads to economic efficiency. e. creates a shortage in the market
e9. Which policy is most efficient when dealing with overbooked airline flights? ●a first-come, first-served policy ●b. compensation policy ●C. a price ceiling d. a price floor ●e. random selection
9. Which policy is most efficient when dealing with overbooked airline flights? a. first-come, first-served policy b. compensation policy c. a price ceiling d. a price floor e. random selection