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Microeconomics - Old Exam 2 (ISBN-10: 1429218290)

# Microeconomics - Old Exam 2 (ISBN-10: 1429218290)

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ISBN-10: 1429218290
ISBN-13: 9781429218290

ISBN-10: 1429218290
ISBN-13: 9781429218290

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07/29/2013

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Name: __________________________ Date: _____________ 1.

Consumer surplus for an individual buyer is equal to:A) the consumer's willingness to pay for the good, minus the marginal cost of producing the good.B) the price of the good, minus the marginal cost of producing the good.C) the consumer's willingness to pay for the good, minus the price of the good.D) the marginal cost of the good, minus the consumer's willingness to pay for the good.Use the following to answer question 2:

Table: Consumer Surplus and Phantom Tickets
2.

(Table: Consumer Surplus and
Phantom
Tickets) Using the information in the table, if the price of a ticket to see
Phantom of the Opera
is \$50, then Robert's consumer surplus is:A) \$60.B) \$50.C) \$10.D) \$240.3.

If there is a decrease in demand, total surplus:A) will increase.B) will decrease.C) will remain the same.D) may change, but we can't tell how.4.

When there is a bountiful harvest of grapefruit, total consumer surplus in the grapefruit market:A) will increase.B) will decrease.C) will remain the same.D) may change but we can't tell how.5.

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay \$75 andRasheed is willing to pay \$100 for a graphing calculator. The price for a calculator at the bookstore is \$65. Howmuch is Mark's individual consumer surplus?A) \$10B) \$25C) \$35D) \$756.

Which of the following is
true
when a market is in equilibrium and there is no government intervention?A) Total surplus is minimized.B) The deadweight loss is maximized.C) No mutually beneficial trades are missed.D) Some mutually beneficial trades may be missed.

Page 2
7.

When there is a new medical report extolling the health advantages of grapefruit, total producer surplus in thegrapefruit market:A) will increase.B) will decrease.C) will remain the same.D) may change but we can't tell how.Use the following to answer question 8:

Table: Economics Textbooks
8.

(Table: Economics Textbooks) The table shows how much money four consumers would be willing to pay for anew economics textbook. The price of the textbook is \$100. How much total consumer surplus would be earned bythese consumers?A) \$125B) \$500C) \$100D) \$75Use the following to answer question 9:

Figure: Producer Surplus II

9.

(Figure: Producer Surplus II) If the price falls from
P
2
to
P
1
, producer surplus decreases by the area:A)
LMK.
B)
P
1
K
0.C)
P
2
0.D)
P
2
P
1
KM.

Page 3
Use the following to answer question 10:

Figure: Producer Surplus III
10.

(Figure: Producer Surplus III) If the price of the good is \$4 and quantity equals 40, producer surplus will equal:A) \$20.B) \$40.C) \$60.D) \$80.Use the following to answer question 11:

Table: Producer Surplus
The table below shows the willingness to sell
The Nutty Nutcracker
tickets by five students who have those tickets as part of their student activity fees.11.

(Table: Producer Surplus) If the price of a ticket to see
The Nutty Nutcracker
is \$50, then Dudley's producer surplusis:A) \$0.B) \$25.C) \$60.D) \$240.

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