practice midterm 2

practice midterm 2 - Exam Name MULTIPLE CHOICE Choose the...

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Unformatted text preview: Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Sal likes to eat pizza. The ________ is the maximum amount that Sal is willing to pay for one piece of pizza. A) marginal benefit B) marginal cost C) efficient amount D) efficient price 2) The value of a good is the A) maximum price you are willing to pay for it. B) maximum you are willing to pay for it minus the price you actually pay for it. C) price that you actually pay for it. D) price you actually pay for it minus the maximum you are willing to pay for it. 3) Nick can purchase each milkshake for $2. For the first milkshake purchased Nick is willing to pay $4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the value of Nick's consumer surplus? A) $9 B) $2 C) $10 D) $3 4) Jane is willing to pay $4 for the first cup of coffee a day, $2.50 for the second cup, and $1 for the third cup, after which she won't buy any coffee. The price of a cup of coffee is $2.40. How many cups of coffee per day will Jane buy? A) None B) 2 C) 1 D) 3 1 5) The figure above shows Clara's demand for CDs. If the market price for a CD is $15, then Clara A) will buy no CDs. B) receives a total of $10 of consumer surplus. C) receives no consumer surplus on the 6th CD she buys. D) receives a total of $40 of consumer surplus. 6) The market demand curve is A) used to derive individual demand curves. B) the sum of the quantity demanded by each individual at each price. C) obtained by summing each individual's marginal utility curve. D) the same as the market's marginal utility curve. 2 7) The figure tells us about the market for red roses. The consumer surplus is ________ a day. A) $1,000 B) $20 C) $800 D) $200 8) The marginal cost curve A) shows the minimum price sellers must receive to produce a unit of a good or service. B) is the same as the demand curve. C) shows the maximum price that a producer must receive to induce it to produce a unit of a good or service....
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practice midterm 2 - Exam Name MULTIPLE CHOICE Choose the...

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