2015-08-13
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179. The study of how the allocation of resources affects economic well-being is called
a. consumer economics.
b. macroeconomics.
c. welfare economics.
d. fad economics.
180. Positive analysis refers to
a. what is.
b. what should be.
c. what could be.
d. what is politically correct.
181. Normative analysis refers to
a. what is.
b. what should be.
c. what maximizes efficiency.
d. what is politically correct.
182. The particular price that results in quantity supplied being equal to quantity demanded is the best price because
a. it maximizes costs of the seller.
b. it maximizes the total welfare of buyers and sellers.
c. it minimizes the expenditure of buyers.
d. it maximizes the profit of buyers.
183. Suppose that John, Paul, George, and Ringo are bidding in an auction for a mint-condition recording of Elvis Presley’s first album. Each has in mind a maximum amount that he will bid. This maximum is called
a. a resistance price.
b. willingness to pay.
c. consumer surplus.
d. producer surplus.
184. Willingness to pay measures
a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
b. the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept.
c. the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept.
d. the maximum amount that a buyer will pay for a good.
185. A consumer’s willingness to pay measures
a. the cost of a good to the buyer.
b. how much a buyer values a good.
c. how much a buyer has to pay to receive a good.
d. how much a seller receives from the sale of a good.
186. If a consumer is willing and able to pay $200 for a particular good but only has to pay $140,
a. the consumer surplus is $60.
b. the consumer surplus is $140.
c. the consumer surplus is $200.
d. the consumer surplus is $340.
187. Dakota is willing to pay $20 to see Independence Day for the fourth time. He finds a theater showing Independence Day for $5. Dakota’s consumer surplus is
a. $5.
b. $15.
c. $20.
d. $25.
188. Sharon values a lawnmower at $300, but buys it for $200. Sharon’s willingness to pay is
a. $100.
b. $200.
c. $300.
d. $500.
189. Ray buys a new tractor for $99,000. He receives consumer surplus of $13,000 on his purchase. Ray’s willingness to pay is
a. $13,000.
b. $86,000.
c. $99,000.
d. $112,000
190. Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs, but buys them on sale for $525. Cameron’s consumer surplus from the purchase is
a. $225.
b. $525.
c. $750.
d. $1,275.
191. Greg buys a new sound system for his dorm room for $300. He receives consumer surplus of $800 from the purchase. How much does Greg value his sound system?
a. $300
b. $500
c. $800
d. $1,100
192. Consumer surplus is
a. the quantity of a good consumers get free.
b. the amount a consumer has to pay less the amount the consumer was willing to pay.
