exMultiple ChoiceIdentify the choice that best completes the statement or answers the question.____ 1. Total surplus is a. the total cost to sellers of providing the good minus the total value of the good to buyers. b. the total value of the good to buyers minus the cost to sellers of providing the good. c. the difference between consumer surplus and sellers’ cost.d. always smaller than producer surplus.
____ 2. Total surplus is
____ 3. We can say that the allocation of resources is efficient if
____ 4. At the equilibrium price of a good, the good will be purchased by those buyers who
____ 5. Which of the following statements is notcorrect about a market in equilibrium? a. The price determines which buyers and which sellers participate in the market. b. Those buyers who value the good more than the price choose to buy the good. c. Those sellers whose costs are less than the price choose to produce and sell the good. d. Consumer surplus will be equal to producer surplus.
____ 6. If an allocation of resources is efficient, then
____ 7. Moving production from a high-cost producer to a low-cost producer will
Table 7-9PriceQuantity DemandedQuantity Supplied$12.00 0 12