principles of microeconomics help!!!

ignore the figure question but please help with the other ones!!!

2

>Sheet

1

: Quiz

1

s.

2

. How much producer surplus do suppliers earn?

A.

B.

C.

D.

3

A.

B.

C.

D.

4

A.

B.

C.

D.

5

A.

B.

C. price
D.

0 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. An unlimited number of concert tickets are on sale for $15 each. What is the total consumer surplus in this market?

A.

8

.50

B.

C.

D.

.50

7

A.

B.

C.

D.

8
10

A.

B.

C.

D.

A.

B. $5,000.00

C.

D.

12

A.

B.

C.

D.

A.

B.

C.

D.

Use this diagram for the question(s) below.

A.

B.

C.

D.

15

A.

B.

C.

D.

A.

B.

C.

D.

A.

B.

C.

D.

A.

B.

C.

D.

20

A.

B.

C.

D.

Chapter 0

3

Quantity demanded:

A.

shows how much sellers are willing and able to sell at different Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper

price

B.

shows how much buyers are willing and able to buy at different prices.

C.

is the amount that buyers are willing and able to buy at a particular price.

D.

is the amount that sellers are willing and able to sell at a particular price.

Use the following figure to answer the question(s) bleow.

Figure: Producer Surplus

Reference: Ref 3-

5

(Figure: Producer Surplus) In the diagram the market price of coffee is $

4

$

20

$22.50

$45

$

15

Consumer surplus is the amount that consumers:

actually pay for a good.

are willing to pay for a good minus what they actually pay for it.

are willing to pay for a good plus the amount that they actually pay for it.

are willing to pay for a good.

A farmer can grow soy or sorghum. If the price of soy increases, the opportunity cost of growing sorghum ______, shifting the supply curve of sorghum ______.

decreases; down and to the right

decreases; up and to the left

increases; up and to the left

increases; down and to the right

Which of the following does NOT shift demand?

expectations

population

income

6

There are

10

$4,

8

7

$5,000.00

$4,250.00

$3,6

12

Use the following figure to answer the question(s) below.

Figure: Supply Shift 2

Reference: Ref 3-7

(Figure: Supply Shift 2) Refer to the figure. What would cause the supply curve to shift from S1 to S2?

a $40 subsidy on each unit of output

a $20 tax on each unit of output

a $40 tax on each unit of output

A $20 subsidy on each unit of output

9

If prices rise, what happens to producer surplus (all other things being equal)?

It falls, because it encourages competition, which reduces profits.

It falls, because fewer people buy goods.

It rises, because each producer is getting more surplus per good sold.

It stays the same, because the forces increasing the surplus counteract the forces reducing it.

11

Use this diagram for the question(s) below.

Figure: Quantity of Good X

Reference: Ref 3-3

(Figure: Quantity of Good X) Refer to the figure. As the price falls from $200 to $100, consumer surplus changes by:

$12,500.00

$10,000.00

–$25,000.

In 2011, revolutions and uprisings spread across North Africa and the Middle East, where a lot of oil is pumped. How did this affect the oil market?

Supply increased, causing the price to fall.

Supply increased, causing the price to rise.

Supply decreased, causing the price to rise.

Supply decreased, causing the price to fall.

13

When the price of wood is high:

consumers will be more likely to use wood in its least valuable uses.

the quantity demanded of wood will also rise.

the quantity demanded of wood will be unaffected.

consumers will be more likely to use wood in its most valuable uses.

14

Figure: Oil

Reference: Ref 3-4

(Figure: Oil) Compared with producing the 20 millionth barrel of oil, the cost of producing the 40 millionth barrel of oil is:

higher.

lower.

approximately the same.

impossible to determine.

(Figure: Shifting Demand)

In the diagram, which of the following factors would cause the demand curve to shift from D1 to D2?

an increase in the price of a substitute good

an increase in the population

an increase in income if this is an inferior good

a decrease in the price of a complement good

16

If the demand for good A increases when the price of good B increases, then good A and good B are:

both inferior goods.

not related.

substitutes for each other.

complements to each other.

17

Anonymity on the Internet has lowered the cost of rudely confronting people. What has happened to the supply of rude confrontations?

The supply has increased, shifting down and to the right.

The supply has decreased, shifting up and to the left.

The supply has decreased, shifting down and to the right.

The supply has increased, shifting up and to the left.

18

Consumer surplus is a gain from exchange, but producer surplus is a loss from exchange.

19

For a normal good, higher income results in:

a decrease in demand.

an increase in demand.

an increase in the quantity demanded.

a decrease in the quantity demanded.

Zoey receives a big raise at work and decides to buy additional Precious Moments figurines. Which of the following statements is TRUE?

Zoey considers Precious Moments figurines to be an inferior good.

Zoey’s demand for Precious Moments figurines decreased.

Zoey considers Precious Moments figurines to be a normal good.

Zoey’s demand for Precious Moments figurines increased because they are relatively less expensive.

#2

#7

#11

	Figure: Quantity of Good X Reference: Ref 3-3

#14

Figure: Quantity of Good X

Reference: Ref 3-3

#15

In the diagram, which of the following factors would cause the demand curve to shift from D1 to D2?