Econ 001 - Principles of Microeconomics » Summer 2019 » Quiz 6

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Question #1
In a market with an upward sloping supply curve and a downward sloping demand curve, a price floor ________.
A.   transfers some producer surplus to the consumer
B.   transfers some consumer surplus to the producer
C.   creates deadweight loss
Question #2
If the consumer surplus is $1000 and the producer surplus is $300, social surplus is
A.   -$700
B.   1300
C.   $700
Question #3
Consumer surplus is best described as the extra benefit consumers receive when they ________.
A.   pay less than they would have been willing to pay
B.   pay exactly what they would have been willing to pay
C.   pay more than they would have been willing to pay
Question #4
Social surplus is ________.
A.   the sum of consumer surplus and producer surplus
B.   producer surplus minus consumer surplus
C.   consumer surplus minus producer surplus
Question #5
Compare a market operating at a quantity lower than equilibrium with the same market operating at the equilibrium quantity. Which of the following statements are true?
A.   The economic surplus is greater at the equilibrium quantity.
B.   It is unclear if the consumer surplus is greater or less at the equilibrium quantity.
C.   The producer surplus is greater at the equilibrium quantity.
Question #6
Which of the following best defines consumer surplus?
A.   The amount a seller is paid for a good minus the seller's actual cost
B.   The difference between an item's production cost and the amount paid by consumers
C.   The social surplus minus producer surplus

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