Economics quiz 20 questions | Economics homework help

 

Economics Quiz 20 Questions

 

 

Question 1 of 20         5.0 Points

 

If the government imposes a maximum price for milk that is above the equilibrium price __________ .

 

   A. this maximum price for milk will have no economic impact      

   B. quantity demanded of milk will be less than quantity supplied

   C. demand for milk will be greater than supply     

   D. the available milk supply will have to be rationed         

 

 

 

Question 2 of 20         5.0 Points

 

The difference between the maximum amount a person is willing to pay for a good and its current market price is known as __________ .

   A. the paradox of value      

   B. profits     

   C. revealed preferences       

   D. consumer surplus

 

 

Question 3 of 20         5.0 Points

Laura makes hand-made jewelry and she would be willing to sell pairs of earrings for $50. If Laura sells each pair of earrings for $65, her producer surplus per pair of earrings sold would be equal to __________ .

 

   A. $115       

   B. $65         

   C. $15         

   D. $50         

 

Question 4 of 20         5.0 Points

Assume that production costs rise and demand remains constant. The equilibrium price will __________ and the producer surplus will __________ .

   A. increase; increase

   B. increase; decrease           

   C. decrease; decrease          

   D. decrease; increase           

 

 

Question 5 of 20         5.0 Points

Suppose that you are willing to pay $25 for a new shirt and the market price is $35. In this case __________ .

   A. you will not buy the good          

   B. you will buy the good and receive a consumer surplus of $5    

   C. you will buy the good and receive a consumer surplus of –$10

   D. you will buy the good and receive a consumer surplus of –$35

 

Question 6 of 20         5.0 Points

Jody’s bakery makes cakes and would be willing to sell each cake for $12.50. If Jody’s bakery sells 10 cakes for $13 each, the total producer surplus for Jody’s bakery would be equal to __________ .

   A. $5.00      

   B. $12.50    

   C. $125.00  

   D. $130.00  

 

Question 7 of 20         5.0 Points

If the equilibrium price of gasoline is $2.75 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon, which of the following will happen?

   A. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00. 

   B. Supply must eventually increase so that the market will come into equilibrium at a price of $2.00.     

   C. Total surplus in the market will be lower than it would be if the price was $2.75 per gallon.   

   D. The market will be in equilibrium at a price of $2.00.   

 

Question 8 of 20         5.0 Points

Tom would be willing to pay a maximum of $2,500 to attend the Super Bowl this year, and he can buy a ticket for $2,050. His consumer surplus is __________ . 

  A. $25          

   B. $50         

   C. $275       

   D. $450       

 

Question 9 of 20         5.0 Points

Assume that there is rent control in Chicago. Which of the following is true?  

 

   A. All consumers in the rental market will benefit because the rent will be lower.

   B. The total surplus will fall because there will be a shortage of apartments.        

   C. The total surplus will rise because consumer surplus will increase.        

   D. Consumer surplus will increase and as a result all consumers in the rental market will benefit.           

 

Question 10 of 20       5.0 Points

If the market price of salmon is $8.99 per pound but the government will not allow salmon farmers to charge more than $4.99 per pound, which of the following will happen?

 

   A. The supply curve for salmon will shift to the left.         

  B. There will be an excess demand for salmon.       

   C. There will be an excess supply of salmon.         

   D. The market will be in equilibrium at a price of $4.99.   

 

 

Question 11 of 20       5.0 Points

Suppose you receive a consumer surplus of $50. The $50 represents __________ .

   A. a monetary payment from the store       

   B. a monetary payment from the government        

   C. a reduction in the original price of the good      

   D. the fact that you paid $50 less than you were willing to pay for the good       

 

 

Question 12 of 20       5.0 Points

At the free market equilibrium, the efficient level of output is produced because __________ .

   A. government regulates the output level that must be produced  

   B. firms are maximizing profit        

   C. willingness to pay is the same for all consumers

   D. total surplus is maximized          

 

Question 13 of 20       5.0 Points

Assume that the supply of smartphones remains constant, but the price of smartphones increases. Producer surplus __________ .

   A. will decrease      

   B. will increase        

   C. will remain constant       

   D. may increase or decrease depending on the amount of the price increase         

 

 

Question 14 of 20       5.0 Points

Consumer surplus can be defined as the __________ .

   A. value a consumer receives from a good minus the price paid for that good      

   B. maximum amount the consumer would pay for a good 

   C. actual amount paid for a good minus the benefit of using that good    

   D. marginal utility of a good divided by its price  

 

 

 

 

Question 15 of 20       5.0 Points

A ban on imported avocados would result in __________ .

   A. an increase in total surplus because domestic production will increase 

   B. no change in total surplus because the reduction in consumer surplus will offset the increase in producer surplus           

   C. a reduction in total surplus because a deadweight loss is created         

   D. It is impossible to say what will happen to total surplus.          

 

 

Question 16 of 20       5.0 Points

In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ .

   A. excess supply     

   B. equilibrium         

   C. higher price         

   D. deadweight loss 

 

 

Question 17 of 20       5.0 Points

If the government sets a minimum price above the equilibrium price for soybeans, which of the following statements will be correct?

   A. There will be an efficient level of output produced.     

   B. There will be excess supply.       

   C. There will be excess demand.    

   D. all of the above  

 

Question 18 of 20       5.0 Points

Which of the following would result from a quota imposed on the quantity of cars that can be imported into the United States?

   A. an increase in the total surplus   

   B. an increase in producer surplus  

   C. an increase in prices for consumers        

   D. an increase in consumer surplus 

 

 

Question 19 of 20       5.0 Points

If the government sets a maximum price for gasoline above the equilibrium price, __________ .

   A. quantity demanded of gasoline will be equal to quantity supplied of gasoline 

   B. there will be excess demand for gasoline           

   C. there will be excess supply of gasoline  

   D. demand for gasoline will be less than supply of gasoline          

 

 

Question 20 of 20       5.0 Points

Assume that Crystal’s demand for handbags remains constant, but the price of handbags increases. Crystal’s consumer surplus __________ .

   A. decreases

   B. increases 

   C. remains constant 

   D. may increase or decrease depending on the amount of the price decrease        

 

 

 

 

 

 

 

 

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.