EU05L2

  • 1

    •

    If you increase your consumption of candy by one additional packet a week, your marginal benefit of this last packet is £1.00. The __________ of this last packet of candy is £1.00.

    value
    price
    marginal cost
    opportunity cost

  • 2

    •

    Which of the following statements is false?

    If marginal benefit exceeds marginal cost, production is efficient.
    Marginal benefit decreases as the quantity consumed increases.
    Marginal cost increases as the quantity produced increases.
    At the efficient quantity, marginal benefit equals marginal cost.

  • 3

    •

    If the market price of a chair decreases, but the demand for chairs remains the same, then the consumer surplus will _____________________.

    increase
    equal producer surplus
    decrease
    remain the same

  • 4

    •

    In the market for CDs, the producer surplus will decrease if _____________________.

    the supply of CDs decreases
    the market price of a CD increases
    the supply of CDs increases
    the opportunity cost of a CD decreases

  • 5

    •

    In a competitive market, which of the following statements is wrong?

    The marginal benefit is the same as opportunity cost.
    The willingness to pay for a good is the same as the value of the good.
    The minimum supply-price is the same as opportunity cost.
    The value of the good is the same as marginal benefit.

  • 6

    •

    If resources are used efficiently, then ________________________.

    consumer surplus is maximized
    consumer surplus plus producer surplus is maximized
    producer surplus is maximized
    opportunity cost is minimized

  • 7

    •

    The supplier of your _______ is most likely a monopoly.

    running shoes
    textbooks
    water
    lodgings

  • 8

    •

    Second-hand smoke is an example of _____________________.

    an opportunity cost
    an external cost
    a marginal cost
    a welfare cost

  • 9

    •

    The moral principle at the centre of all major religions is the _____________.

    symmetry principle
    symmetrically fair principle
    common property syndrome
    fairness principle

  • 10

    •

    Underproduction of sanitation services will create a deadweight loss that is _________the deadweight loss that overproduction would create.

    the same as
    less than
    greater than
    greater than, less than, or the same as

    Please enter your name and press the SEND button