Econ 202 Ole Miss
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1. Which of the following is not an example of scarcity? D
a.
Each member of a household cannot get everything
he or she wants.
b.
Every individual in society cannot attain the highest
standard of living to which he or she might aspire.
c.
Only some people can afford to buy a BMW automo-
bile.
d.
Miranda has an unlimited supply of oranges in her
orchard.
2. A demand curve reflects each of the following except C
the
a.
highest price buyers are willing to pay for each quan-
tity.
b.
willingness to pay of all buyers in the market.
c.
ability of buyers to obtain the quantity they desire.
d.
value each buyer in the market places on the good.
3. If a market is allowed to move freely to its equilibrium A
price and quantity, then an increase in supply will
a.
increase consumer surplus.
b.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
reduce consumer surplus.
c.
not affect consumer surplus.
d.
Any of the above are possible.
4. If the United States changed its laws to allow for the D
legal sale of a kidney, which of the following is likely
to occur?
a.
The price of kidneys would rise to balance supply and
demand.
b.
The gains from trade would make both buyers and
sellers better off.
c.
Thousands of lives would be saved.
d.
All of the above are correct
5. Market power refers to the C
a.
government regulations imposed on the sellers in a
market.
b.
forces of supply and demand in determining equilib-
rium price.
c.
ability of market participants to influence price.
d.
side effects that may occur in a market.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
6. If the current allocation of resources in the market for B
wallpaper is efficient,
a.
producer surplus equals consumer surplus in the mar-
ket for wallpaper.
b.
the market for wallpaper is in equilibrium.
c.
on the last unit of wallpaper that was produced and
sold, the value to buyers exceeded the cost to sellers.
d.
All of the above are correct.
7. When a buyer's willingness to pay for a good is equal A
to the price of the good, the
a.
buyer is indifferent between buying the good and not
buying it.
b.
price of the good exceeds the value that the buyer
places on the good.
c.
buyer will buy as much of the good as the buyer's
budget allows.
d.
buyer's consumer surplus for that good is maximized.
8. The particular price that results in quantity supplied C
being equal to quantity demanded is the best price
because it
a.
minimizes the expenditure of buyers.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sell-
ers.
d.
maximizes tax revenue for the government.
9. Abraham drinks Mountain Dew. He can buy as many A
cans of Mountain Dew as he wishes at a price of $0.55
per can. On a particular day, he is willing to pay $0.95
for the first can, $0.80 for the second can, $0.60 for
the third can, and $0.40 for the fourth can. Assume
Abraham is rational in deciding how many cans to buy.
His consumer surplus is
a.
$0.70.
b.
$1.00.
c.
$0.50.
d.
$0.60.
10. Inefficiency exists in an economy when a good is B
a.
not produced because buyers do not value it very
highly.
b.
not being consumed by buyers who value it most
highly.
Study online at https://quizlet.com/_dfeglk
1. Which of the following is not an example of scarcity? D
a.
Each member of a household cannot get everything
he or she wants.
b.
Every individual in society cannot attain the highest
standard of living to which he or she might aspire.
c.
Only some people can afford to buy a BMW automo-
bile.
d.
Miranda has an unlimited supply of oranges in her
orchard.
2. A demand curve reflects each of the following except C
the
a.
highest price buyers are willing to pay for each quan-
tity.
b.
willingness to pay of all buyers in the market.
c.
ability of buyers to obtain the quantity they desire.
d.
value each buyer in the market places on the good.
3. If a market is allowed to move freely to its equilibrium A
price and quantity, then an increase in supply will
a.
increase consumer surplus.
b.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
reduce consumer surplus.
c.
not affect consumer surplus.
d.
Any of the above are possible.
4. If the United States changed its laws to allow for the D
legal sale of a kidney, which of the following is likely
to occur?
a.
The price of kidneys would rise to balance supply and
demand.
b.
The gains from trade would make both buyers and
sellers better off.
c.
Thousands of lives would be saved.
d.
All of the above are correct
5. Market power refers to the C
a.
government regulations imposed on the sellers in a
market.
b.
forces of supply and demand in determining equilib-
rium price.
c.
ability of market participants to influence price.
d.
side effects that may occur in a market.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
6. If the current allocation of resources in the market for B
wallpaper is efficient,
a.
producer surplus equals consumer surplus in the mar-
ket for wallpaper.
b.
the market for wallpaper is in equilibrium.
c.
on the last unit of wallpaper that was produced and
sold, the value to buyers exceeded the cost to sellers.
d.
All of the above are correct.
7. When a buyer's willingness to pay for a good is equal A
to the price of the good, the
a.
buyer is indifferent between buying the good and not
buying it.
b.
price of the good exceeds the value that the buyer
places on the good.
c.
buyer will buy as much of the good as the buyer's
budget allows.
d.
buyer's consumer surplus for that good is maximized.
8. The particular price that results in quantity supplied C
being equal to quantity demanded is the best price
because it
a.
minimizes the expenditure of buyers.
, Econ 202 Ole Miss
Study online at https://quizlet.com/_dfeglk
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sell-
ers.
d.
maximizes tax revenue for the government.
9. Abraham drinks Mountain Dew. He can buy as many A
cans of Mountain Dew as he wishes at a price of $0.55
per can. On a particular day, he is willing to pay $0.95
for the first can, $0.80 for the second can, $0.60 for
the third can, and $0.40 for the fourth can. Assume
Abraham is rational in deciding how many cans to buy.
His consumer surplus is
a.
$0.70.
b.
$1.00.
c.
$0.50.
d.
$0.60.
10. Inefficiency exists in an economy when a good is B
a.
not produced because buyers do not value it very
highly.
b.
not being consumed by buyers who value it most
highly.
