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.   creates deadweight loss
B.   transfers some consumer surplus to the producer
C.   transfers some producer surplus to the consumer
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.   consumer surplus minus producer surplus
B.   the sum of consumer surplus and producer surplus
C.   producer surplus minus consumer 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 social surplus minus producer surplus
B.   The difference between an item's production cost and the amount paid by consumers
C.   The amount a seller is paid for a good minus the seller's actual cost

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