Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
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Module
Microeconomics
Institution
Microeconomics
Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
When calculating producer surplus for an individual firm, ______ the firm's willingness to accept from the market price - Answers subtract
You received $250 for a stationary bike and had a producer surplus of $50. Yo...
Microeconomics Market Efficiency Test Questions with complete Solutions Rated A+
When calculating producer surplus for an individual firm, ______ the firm's willingness to accept from
the market price - Answers subtract
You received $250 for a stationary bike and had a producer surplus of $50. You were willing to accept -
Answers $200
A tax - Answers increases the costs of goods sold and shifts the supply curve up
A tax on suppliers - Answers shifts supply curve up vertically
When calculating tax revenue, calculate the area between the total price paid by ______ and the net
price received by ______, from zero to quantity traded - Answers consumers; suppliers
When calculating producer surplus for the market, - Answers calculate the area above the supply curve
and below the equilibrium price, from zero to quantity traded
The difference between the price producers receive for a good or a service and the minimum price they
are willing and able to accept is - Answers producer surplus
The difference between the economic surplus when the market is at its competitive equilibrium and the
economic surplus when the market is not in equilibrium is the - Answers deadweight loss
______ is a branch of economics that focuses on measuring the well-being of market participants and
how changes in the market affect their well-being - Answers Welfare Economics
All else equal, when the price increases, producer surplus - Answers increases
Consumer surplus is measured in - Answers dollars
All else equal, when the price decreases, consumer surplus - Answers increases
Graphically, producer surplus is the area ______ the supply curve and ______ the equilibrium price,
from zero to the quantity traded - Answers above; below
When marginal benefit equals marginal cost, economic ______ is maximized in the market - Answers
surplus
When calculating consumer surplus for an entire market - Answers calculate the area below the demand
curve and above the equilibrium price, from zero to the quantity traded
Low prices are good for consumers if - Answers they occur naturally in the market
______ surplus can be thought of as the wealth that trade creates for consumers in a market - Answers
Consumer
______ surplus will always be less with a banding price floor than without - Answers Consumer
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