econ6 - Submitted by Le, Thao (THAOLE2) on 10/10/2011...

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Submitted by Le, Thao (THAOLE2) on 10/10/2011 10:13:12 AM Points Awarded 96.60 Points Missed 5.40 Percentage 94.7% 1. A market equilibrium will generate the largest possible surplus when: A) there are no external benefits and external costs. B) there is perfect competition. C) perfect information is available. D) all of the above. Points Earned: 5.0/5.0 Correct Answer(s): D 2. If a consumer buys a good we know that her willingness to pay: A) is greater than its price. B) is less than its price. C) is equal to its price. D) is either greater than or equal to its price. Points Earned: 5.0/5.0 Correct Answer(s): D 3.
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Suppose that the price of a hamburger is $3. Victoria is willing to pay $5 for the first hamburger, David is willing to pay $4 for the second hamburger, Kelly is willing to pay $3 for the third hamburger, and Antony is willing to pay $2 for the fourth hamburger. In equilibrium, what is the total consumer surplus from the consumption of hamburger? A) $0 B) $2 C) $3 D) $9 Points Earned: 5.0/5.0 Correct Answer(s): C 4. In Figure 6.1, the consumer surplus is equal to: A) 400 B) 300 C) 200 D) 100 Points Earned: 0.4/0.4 Correct Answer(s): D 5.
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If the good in Figure 6.1 were free: A) consumer surplus would equal $450 and consumer expenditure would be $0. B) consumer surplus and consumer expenditure would both be maximized. C) consumer surplus and consumer expenditure would both be zero. D) consumer surplus would be maximized but consumer expenditure would be impossible to calculate. Points Earned: 5.0/5.0 Correct Answer(s): A 6. Suppose the market price for bagels is $1.50 each. If Fresh Bagels Bakery's marginal cost of producing that bagel is $0.75, its producer surplus from that bagel is: A) $0.
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econ6 - Submitted by Le, Thao (THAOLE2) on 10/10/2011...

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