Eco06L1

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    If a country cannot produce more of one good without producing less of another good that people value more highly, then _____________________.

    resource use is efficient
    the opportunity cost is the lowest possible
    resource use is inefficient
    the resources used have the highest possible value

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    Marginal benefit is the benefit received from ______________________.

    producing the efficient quantity
    consuming the efficient quantity
    consuming one more unit of a good or service
    consuming more goods or services

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    Marginal cost is the value of the _________________________.

    marginal benefit
    equilibrium quantity
    best alternative forgone
    efficient production

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    The value of a tub of ice cream equals all of the following items except the ___________________.

    maximum price that people are willing to pay for it
    marginal benefit from consuming it
    price paid for the tub plus the consumer surplus from it
    price paid for the tub

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    Consumer surplus is the ____________________________.

    total cost paid by consumers
    value of the good minus its price
    the number of goods sold times the market price
    greatest when price increases

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    Producer surplus is the price of the good _____________________________.

    times the quantity sold
    subtracted from the value of the good
    minus its opportunity cost of production
    plus the consumer surplus

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    Utilitarianism is a principle whose goal is _______________.

    equal happiness for all workers
    equal pay for equal work
    the greatest happiness for the greatest number
    the greatest pay for the greatest number

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    A cost borne not by the producer but by other people is called _____________ cost.

    an opportunity
    a marginal
    an external
    a consumer

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    An external benefit is a benefit that _________________.

    is greatest at the equilibrium point
    experiences increasing marginal returns
    accrues to someone other than the buyer of a good
    always equals external cost

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    At inefficient levels of production, __________________________________.

    deadweight loss occurs
    the market price is greater than the monopoly price
    producer surplus is greater than consumer surplus
    consumer surplus is greater than producer surplus

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