ECON-B 251 Canvas Questions Exam
#2 and answers
In a general admission event with tickets, which method is used to allocate the best
locations to experience the event?✔✔first-come, first-served
When a market price allocates a scarce resource, the people who ______________
get the resource.✔✔are willing and able to pay the market price
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 _____✔✔3
Striving to achieve the greatest happiness for the greatest number is related to which
economic concept?✔✔utilitarianism
The symmetry principle in economics means✔✔all similar individuals must be
treated similarly.
With rent controls, which of the following is most likely to occur?✔✔Black market
activity, An increase in search activity, A decrease in consumer surplus
If policy makers believe the equilibrium wage rate is unfairly "too low," then policy
makers can address this issue by imposing a price ________ _________the
equilibrium wage. As a result, a(n)____________ of ___________ occurs✔✔floor,
above, surplus, labor
Suppose a $10 tax is placed on a good. The more inelastic the supply of the good,
the✔✔more of the tax will be paid by the sellers.
When an effective production quota is applied in the market for sugar, the quantity
produced _________, the price _________, and marginal social benefit is
__________ marginal social cost.✔✔decreases, increases, greater than
In the market for wheat when a subsidy is paid to wheat farmers, the equilibrium
quantity of wheat ____________, the equilibrium price of wheat __________, and
marginal social benefit is __________ marginal social cost✔✔increases, decreases,
less than
Which of the following is an example of a market failure? A(n)✔✔quantity in which
marginal social benefit exceeds marginal social cost, outcome in which a cost spills
onto a third party, overproduction of goods and services.
An example of an activity generating an external cost is✔✔dumping mercury into a
local strem.
#2 and answers
In a general admission event with tickets, which method is used to allocate the best
locations to experience the event?✔✔first-come, first-served
When a market price allocates a scarce resource, the people who ______________
get the resource.✔✔are willing and able to pay the market price
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 _____✔✔3
Striving to achieve the greatest happiness for the greatest number is related to which
economic concept?✔✔utilitarianism
The symmetry principle in economics means✔✔all similar individuals must be
treated similarly.
With rent controls, which of the following is most likely to occur?✔✔Black market
activity, An increase in search activity, A decrease in consumer surplus
If policy makers believe the equilibrium wage rate is unfairly "too low," then policy
makers can address this issue by imposing a price ________ _________the
equilibrium wage. As a result, a(n)____________ of ___________ occurs✔✔floor,
above, surplus, labor
Suppose a $10 tax is placed on a good. The more inelastic the supply of the good,
the✔✔more of the tax will be paid by the sellers.
When an effective production quota is applied in the market for sugar, the quantity
produced _________, the price _________, and marginal social benefit is
__________ marginal social cost.✔✔decreases, increases, greater than
In the market for wheat when a subsidy is paid to wheat farmers, the equilibrium
quantity of wheat ____________, the equilibrium price of wheat __________, and
marginal social benefit is __________ marginal social cost✔✔increases, decreases,
less than
Which of the following is an example of a market failure? A(n)✔✔quantity in which
marginal social benefit exceeds marginal social cost, outcome in which a cost spills
onto a third party, overproduction of goods and services.
An example of an activity generating an external cost is✔✔dumping mercury into a
local strem.
