College economics.. Chapter 7.
If i buyer's willingness to pay for a new Honda is 20,000 and she is able to actually buy it for $18,00,her consumer surplus is....
$2,000
Bicycle cost: $400. it costs: $200 for the seller to produce the new Bicycle. If bought what is the value of tatal surplus.?
$200
if buyers are rational and there is not market failure..
A: free market solutions are efficient C: free market solutions maximize total surplus.
Total surplus is the area..
Below the demand curve and above the supply curve
T or F : Consumer surplus is the buyer's willingness to pay minus the sellers cost.
F
T or F: Free markets are efficient because the allocate out put to buyers who have a willingness to pay that is below the price.
F
T or F: If you willingness to pay for a hamburger is $3.00 and the price is $2.00, your consumer surplus is $5.00
F
T or F: Producing more of a product always adds to total surplus.
F
T or F: Total surplus is the sellers cost minus the buyer's willingness to pay.
F
T or F:Producer surplus is a measure of the unsold inventories of suppliers in a market.
F
T or F: Consumer surplus is a measure of buyer's benefits if buyers are rational.
T
T or F: Cost to the seller includes the opportunity cost of the seller's time.
T
T or F: Equilibrium is a competitive market maximizes total surplus.
T
T or F: Externalizes are side effects, such as pollution, that are not taken into account by the buyers and sellers in a market.
T
T or F: If the demand curve in a market is stationary, consumers surplus decreases when the price in that market increases.
T
T or F: Producer surplus is the area above the supply curve and below the price.
T
T or F: The height of the supply curve is a the marginal seller's cost
T
T or F: The two main types of market failure are market power and externalizes.
T
T or F: the major advantage of allowing free markets to allocate resources is that the outcome of the allocation is efficient.
T
producer surplus is the area..
above the supply curve and below the price.
If a market is efficient, then..
all the above (lol) to much to type.
In general, if a benevolent social planner wanted to maximize the total benefits received by buyer's and sellers in a market, the planner should..
allow the market to seek equilibrium price.
If a market generates a side effects of externally, then free market solutions..
are inefficient
if a producer has market power then free market solutions..
are inefficient
Consumer surplus is the area..
below the demand curve and above the price
An increases in the price of a good along a stationary demand curve..
decreases consumer surplus
baseball glove cost $50 to produce. if Joe want another one for the cost of $100 and sue wants one for $40, then to maximize..
efficiency Joe should get the glove.
Adam Smith's "invisible hand" concept suggests that a competitive market outcome..
maximizes total surplus
A buyer's willingness to pay is that buyer's...
maximum amount they are wiling to pay for a good.
Medical care clearly enhances peoples lives. Therefore, we should consume medical care until..
the benefit buyers place in medical care is equal tot he cost of producing it.
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then...
the cost of production on the last unit produced exceeds the value placed on it by buyer's
The sellers is the area..
the minimum amount the seller is willing to accept for a good.
if a benevolent social planner chooses to produce less that the equilibrium quantity of a good, then..
the value placed on the last unit of production by buyer's exceeds the cost of production.