Econ 001 - Principles of Economics » Fall 2021 » Quiz on Lesson 10

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Question #1
Who is more self-interested in wanting a 'good price' in the market place... buyer or seller?
A.   In economics, they are viewed as equally self-interested. The seller will try to sell to the highest bidder. The buyer will try to buy from the lowest offer.
B.   The buyer is more self-interested. That's why we call some buyers "stingy" or "cheap."
C.   The seller is more self-interested. That's why we call some companies "greedy."
Question #2
Joe wants to sell his used surf board. His younger brother could use it, but he would sell it for a minimum of $120. Sara wants to buy it and would pay a maximum of $180. Which of the following possible prices would provide trade gains to BOTH of them?
A.   $200, $100, $125
B.   $175, $150, $100
C.   $200, $150, $100
D.   $175, $150, $125
Question #3
Total "Social Surplus" equals Consumer Surplus and Producer Surplus, added together.
A.   TRUE
B.   FALSE
Question #4
If the buyer's maximum value for a used phone is $100 while the seller's minimum cost for the used phone is $150, no trade will happen.
A.   TRUE
B.   FALSE

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