1) Choose the statement or statements that are correct. I.The value of one more unit of a good or service is its marginal benefit. II.Marginal benefit equals the total amount we spend on a good or service. III.Marginal benefit is the maximum amount willingly paid for another unit of a good or service. A) I only. B) II only. C) I and III. D) III only. E) I, II, and III.
5.2 Benefit, Cost, and Surplus
1) Choose the statement or statements that are correct.
I.The value of one more unit of a good or service is its marginal benefit.
II.Marginal benefit equals the total amount we spend on a good or service.
III.Marginal benefit is the maximum amount willingly paid for another unit of a good or service.
A) I only.
B) II only.
C) I and III.
D) III only.
E) I, II, and III.
2) The demand curve for a good is the same as the
A) marginal cost curve of that good.
B) marginal benefit curve for that good.
C)
D) production possibilities frontier (
E) none of the above.
3) What is the consumer surplus for the market from the production of the 100th unit of a good?
A) the marginal
B) the marginal social benefit from the 100th unit
C) the
D) the marginal social benefit from the 100th unit minus the marginal social cost of the 100th unit
E) the marginal social benefit from the 100th unit minus the price paid for the 100th unit
4) Except for the very last unit of a good sold, the price paid by consumers of that good for an additional unit is
A) less than the marginal social benefit from that unit.
B) more than the marginal social benefit from that unit.
C) less than the marginal social cost of producing that unit.
D) less than the opportunity cost of producing that unit.
E) equal to consumer surplus.
5) A new car has a sticker price of $35,000. Fred decided that he would pay no more than $32,000 for this car. He bought the car for $31,000. Fred obtained a consumer surplus of
A) $35,000.
B) $32,000.
C) $4,000.
D) $3,000.
E) $1,000.
6) A used truck has a sticker price of $21,000. Arthur decided that he would pay no more than $19,500 for this truck. He bought the truck for $19,250. Arthur obtained a consumer surplus of
A) $21,000.
B) $19,500.
C) $19,250.
D) $1,750.
E) $250.
7) Charlene is willing to pay $5.00 for a sandwich. If the price of a sandwich is ________, Charlene ________.
A) $4.00; does not receive any consumer surplus
B) $4.00; receives a consumer surplus
C) $6.00; receives a consumer surplus
D) $6.00; receives a marginal cost
E) $4.00; receives a
8) Consumer surplus is
A) the difference between the maximum price consumers are willing to pay and the minimum price producers are willing to accept.
B) the excess of the benefit received from a good over the amount paid for it.
C) the total value to consumers of a good.
D) equal to the area under the demand curve.
E) the total amount paid for a good.
9) An oil painting has an opportunity cost of $1,000. The painting was purchased for $1,500. How much consumer surplus did the buyer obtain?
A) $1,500
B) $1,000
C) $500
D) zero
E) cannot be determined from the information given
10) The maximum price a consumer is willing to pay for a good is the
A) consumer surplus.
B) value of the good.
C) opportunity cost of producing the good.
D) minimum supply-price.
E) marginal cost of the good.
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