Posted: October 22nd, 2023

The value that consumers get (from consuming a product) over

1.

The value that consumers get (from consuming a
product) over and above what they actually paid for the product is called
consumer
utility.
consumption
expenditures.
consumer
surplus.
consumerdem

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2.

Consumer surplus arises in a market because
at the current market
price, quantity supplied is greater than quantity demanded.
at the current market
price, quantity demanded is greater than quantity supplied.
the market price is
below what some consumers are willing to pay for the product.
the market price is higher than what some
consumers are willing to pay for the product.
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3.

Allocative efficiency occurs only at that
output where
marginal
benefit exceeds marginal cost by the greatest amount.
consumer
surplus exceeds producer surplus by the greatest amount.
the
combined amounts of consumer surplus and producer surplus are maximized.
the
areas of consumer and producer surplus are equal.

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4.

Productive efficiency occurs at the point
where
marginal
benefit exceeds marginal cost by the greatest amount.
consumer
surplus exceeds producer surplus by the greatest amount.
the
production technique minimizes cost.
the
production technique minimizes economic surplus.

5.

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The difference between the actual price that a
producer receives and the minimum acceptable price the producer is willing to
accept is called the producer
revenues.
surplus.
costs.
utility.

6.

The difference between the maximum price a
consumer is willing to pay for a product and the actual price the consumer pays
is called
utility.
consumer
surplus.
consumer
demand.
market
failure.
7.

The minimum acceptable price for a product
that producer Sam is willing to receive is $15. The price he could get for the
product in the market is $18. How much is Sam’s producer surplus?
$3
$33
$45
$270
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The market supply curve indicates the
minimum acceptable
prices that sellers are willing to accept for the product.
maximum prices that
buyers are willing and able to pay for the product.
total revenues that
sellers would receive from selling various quantities of the product.
total amount that buyers will pay in buying a
given quantity of the product.
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9.

Deadweight loss
is measured as the
combined loss of consumer surplus and producer surplus.
results from producing
a unit of output for which the maximum willingness to pay exceeds the minimum
acceptable price.
can result from
underproduction, but not from overproduction.
can result from overproduction, but not from
underproduction.
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10

When a competitive market maximizes economic
surplus, it implies that the
marginal
benefit of having the product is greater than the marginal cost.
buyers
are getting the maximum consumer surplus from the product.
combined
consumer and producer surplus is maximized.
quantity
demanded is lower than the quantity supplie

Use
the table below to answer the following question.

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Producer

Minimum
Acceptable Product Price

Actual
Product Price (Equilibrium Price)

Kimberly

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Drake

7

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13

Nicki

9

13

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Victoria

11

13

What is the total producer surplus for all
four producers shown?
$24
$6
$13
$19
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When the marginal benefit of an output exceeds
the marginal cost
production
of that output should be increased, in order to maximize economic surplus.
production
of that output should be decreased, in order to maximize economic surplus.
increasing
the production of that output would increase the missing surplus.
reducing
the production of that output would reduce the missing surplus.
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13.

Use the table below to
answer the following question.

Units

Maximum Willingness to Pay

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Market Price

Minimum Acceptable Price

1

$14

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$ 2

2

12

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8

4

3

10

8

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6

4

8

8

8

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5

6

8

10

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6

4

8

14

If output is at 3 units, then the market ____
allocative efficiency and _____ productive efficiency.
achieves, achieves
achieves, does not
achieve
does not achieve,
achieves
does not achieve, does not achieve
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