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Test #2 - 1 The cost of producing one more unit of a good...

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1. The cost of producing one more unit of a good is: a. impossible to find. b. total cost. c. marginal cost . d. average cost. 2. Consumer surplus is equal to: a. total area under the demand curve down to the market price. ** b. the area from the demand curve to the supply curve less than the equilibrium quantity. c. the vertical distance from the demand curve down to the horizontal axis. d. total area under the demand curve. 3. If the cost of producing a product increases, then: 4. When the market price is artificially kept too high, then: 5. The existence of a shortage in a market will cause: 6. Market equilibrium: a. maximizes producer surplus. b. maximizes economic surplus. c. maximizes consumer surplus. d. all of the above. 7. An advance in technology increases supply:
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8. Market supply is determined: 9. Which of the following pairs of goods would be an example of complements? 10. When the price of a good increases: a. the quantity demanded of the good will increase. b. the demand for the good will increase. c. the quantity demanded of the good will decrease. d. the demand for the good will decrease.
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