Econ B-251 Exam 2 Study Guide Questions With Correct Answers

Econ B-251 Exam 2 Study Guide
Questions With Correct Answers
When |a |market |price |allocates |a |scarce |resource, |the |people |who |are |
________________________ |get |the |resource



A) |most |deserving

B) |willing |and |able |to |pay |the |market |price

C) |first |in |line

D) |willing |to |pay |the |most |- |CORRECT |ANSWER✔✔-B) |willing |and |able |to |pay |the |market |price



In |a |general |admission |event |with |tickets, |which |method |is |used |to |allocate |the |best |locations |
to |experience |the |event?



A) |personal |characteristics

B) |first-come, |first-served

C) |contest

D) |command |- |CORRECT |ANSWER✔✔-B) |first-come, |first-served



Homer, |Bart, |and |Lisa |are |the |only |consumers |in |the |market. |Using |the |information |in |the |
above |table, |if |the |market |demand |for |chocolate |chip |cookies |at |$4.00, |then |the |market |
quantity |demanded |is |_______ |pounds.



A) |12

B) |4

C) |11

D) |8 |- |CORRECT |ANSWER✔✔-C) |11

,In |the |figure |above, |at |a |quantity |of |2 |units, |consumer |surplus |is |$__



A) |1

B) |3

C) |4

D) |2 |- |CORRECT |ANSWER✔✔-A) |1



In |the |market |above |for |red |roses. |The |consumer |surplus |is |$_______ |a |day.



A) |100

B) |400

C) |150

D) |200 |- |CORRECT |ANSWER✔✔-D) |200



Suppose |there |are |four |firms |that |are |each |willing |to |sell |one |unit |of |a |good. |Each |firm |has |a |
different |minimum |price |that |they |are |willing |to |sell |for: |Firm |W |$6, |Firm |X |$7, |Firm |Y |$10, |
and |Firm |Z |$12. |If |the |market |price |is |$11 |then |the |market |supply |for |this |good |will |be



A) |5

B) |2

C) |3

D) |4 |- |CORRECT |ANSWER✔✔-C) |3



In |the |figure |above, |at |a |quantity |of |1 |unit, |producer |surplus |is |$__



A) |3

,B) |2

C) |4

D) |1 |- |CORRECT |ANSWER✔✔-B) |2



In |the |market |above |for |hot |dogs. |The |producer |surplus |is |$_______ |per |hour.



A) |240

B) |60

C) |120

D) |6 |- |CORRECT |ANSWER✔✔-B) |60



In |the |figure |above, |at |the |efficient |quantity |total |surplus |equals |$____



A) |5

B) |2

C) |9

D) |6 |- |CORRECT |ANSWER✔✔-C) |9



In |the |figure |above |suppose |total |output |is |2 |units. |At |the |equilibrium |price, |consumer |surplus
|is |$______, |producer |surplus |is |$_______, |and |deadweight |loss |is |$_______.




A) |4,4,1

B) |2,2,2

C) |4,2,1

D) |2,4,2 |- |CORRECT |ANSWER✔✔-A) |4,4,1

, Striving |to |achieve |the |greatest |happiness |for |the |greatest |number |is |related |to |which |
economic |concept?



A) |the |symmetry |principle

B) |the |big |tradeoff

C) |efficiency

D) |utilitarianism |- |CORRECT |ANSWER✔✔-D) |utilitarianism



The |symmetry |principle |in |economics |means



A) |similar |individuals |must |have |similar |outcomes.

B) |all |individuals |must |have |similar |outcomes.

C) |all |similar |individuals |must |be |treated |similarly.

D) |individuals |must |have |different |outcomes. |- |CORRECT |ANSWER✔✔-C) |all |similar |individuals |
must |be |treated |similarly



With |rent |controls, |which |of |the |following |is |most |likely |to |occur?

Choose |all |that |apply.



A) |decrease |in |consumer |surplus.

B) |Black |market |activity.

C) |An |efficient |outcome.

D) |An |overproduction |of |housing.

E) |An |increase |in |search |activity |- |CORRECT |ANSWER✔✔-A) |decrease |in |consumer |surplus; |B) |
Black |market |activity; |and |E) |An |increase |in |search |activity



The |above |table |shows |the |market |for |apartments.