Question 1
Consumer surplus is:
A.
Price minus cost B.
Total revenue C.
Tax revenue D.
WTP minus actual price
Question 2
What is meant by minimum supply price?
A.
Lost surplus from inefficiency. B.
Lowest price a producer would accept. C.
S = D. D.
Total surplus measures market benefit.
Question 3
What is meant by deadweight loss?
A.
Difference between price received and minimum acceptable price. B.
Changes both surpluses. C.
Lost surplus from inefficiency. D.
Can reduce consumer surplus.
Question 4
What is meant by producer surplus?
A.
Difference between willingness to pay and price paid. B.
Total surplus measures market benefit. C.
Can increase consumer surplus. D.
Difference between price received and minimum acceptable price.
Question 5
What is meant by consumer surplus?
A.
Can increase consumer surplus. B.
Total surplus measures market benefit. C.
Difference between willingness to pay and price paid. D.
Maximum price a consumer would pay.
Question 6
What is meant by welfare?
A.
Difference between willingness to pay and price paid. B.
S = D. C.
Lost surplus from inefficiency. D.
Total surplus measures market benefit.
Question 7
A rise in equilibrium price will:
A.
Always increase CS B.
Have no effect C.
Eliminate demand D.
Reduce consumer surplus
Question 8
What is meant by shift in demand?
A.
Lost surplus from inefficiency. B.
Total surplus measures market benefit. C.
Difference between price received and minimum acceptable price. D.
Changes both surpluses.
Question 9
What is meant by subsidy?
A.
Can increase consumer surplus. B.
Can reduce consumer surplus. C.
Total surplus measures market benefit. D.
Maximum price a consumer would pay.
Question 10
What is meant by equilibrium?
A.
Total surplus measures market benefit. B.
S = D. C.
Difference between willingness to pay and price paid. D.
Difference between price received and minimum acceptable price.
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