Eco06L2

  • 1

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    If you increase your consumption of soda by one additional can a week, your marginal benefit of this last can is $1.00. The __________ of this last can of soda is $1.00.

    opportunity cost
    value
    price
    marginal cost

  • 2

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    Which of the following statements is false?

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

  • 3

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

    equal producer surplus
    decrease
    remain the same
    increase

  • 4

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

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

  • 5

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

    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 marginal benefit is the same as opportunity cost.
    The value of the good is the same as marginal benefit.

  • 6

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    If resources are used efficiently, then ________________________.

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

  • 7

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    The supplier of your _______ is most likely a monopoly.

    water
    textbooks
    running shoes
    lodgings

  • 8

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    Second-hand smoke is an example of _____________________.

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

  • 9

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

    fairness principle
    symmetry principle
    common property syndrome
    symmetrically fair principle

  • 10

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

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

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