ECON 1100 COMPLETE LATEST
ASSESSMENT 6.1 BASED QUESTIONS
AND ANSWERS
All of the following are possible sources of inefficiency except: - ANSWER-perfect competition.
In a competitive market, a marginal cost curve can be interpreted as a: - ANSWER-supply curve.
Assuming no market failures, an efficient level of an output exists when: - ANSWER-marginal benefit is
equal to marginal cost.
A demand curve can be interpreted as a: - ANSWER-marginal benefit curve.
The efficient level of output in the market represented by the graph occurs at quantity: - ANSWER-10,
where MB = MC.
In free market equilibrium, buyers in this market enjoy consumer surplus equal to - ANSWER-$10
In free market equilibrium, producer surplus is equal to - ANSWER-$5
Buyers enjoy consumer surplus when the market price is ________than the highest price buyers are
willing to pay; sellers enjoy producer surplus when the market price is ________ than the lowest price
sellers are willing to accept. - ANSWER-lower; higher
Ceteris paribus, an increase in the demand for soda leads to: - ANSWER-an increase in the price of soda
and an increase in producer surplus.
Ceteris paribus, when supply increases, there is: - ANSWER-a decrease in price and an increase in
consumer surplus.
ASSESSMENT 6.1 BASED QUESTIONS
AND ANSWERS
All of the following are possible sources of inefficiency except: - ANSWER-perfect competition.
In a competitive market, a marginal cost curve can be interpreted as a: - ANSWER-supply curve.
Assuming no market failures, an efficient level of an output exists when: - ANSWER-marginal benefit is
equal to marginal cost.
A demand curve can be interpreted as a: - ANSWER-marginal benefit curve.
The efficient level of output in the market represented by the graph occurs at quantity: - ANSWER-10,
where MB = MC.
In free market equilibrium, buyers in this market enjoy consumer surplus equal to - ANSWER-$10
In free market equilibrium, producer surplus is equal to - ANSWER-$5
Buyers enjoy consumer surplus when the market price is ________than the highest price buyers are
willing to pay; sellers enjoy producer surplus when the market price is ________ than the lowest price
sellers are willing to accept. - ANSWER-lower; higher
Ceteris paribus, an increase in the demand for soda leads to: - ANSWER-an increase in the price of soda
and an increase in producer surplus.
Ceteris paribus, when supply increases, there is: - ANSWER-a decrease in price and an increase in
consumer surplus.
