Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 2MCQ
To determine
To select:
The statement which is false in the given options.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The graph shows the benefits and costs of consuming BK Breakfast Burgers.
Marginal Benefit and Marginal Cost
Marginal benefit,
marginal cost (per
BK breakfast Burger)
7
4
Marginal
cost
2
Marginal
benefit
1
1
2
4
5
7
8
10
Quantity of BK
Breakfast Burgers
At the optimal quantity, what is the total cost of the burgers that are purchased?
Your answer:
3.
1. Marginal cost is the opportunity cost
of a good or service divided by the number of units produced.
of a good or service that exceeds its benefit.
that your activity imposes on someone else.
that arises from producing one more unit of a good or service.
2. The law of demand implies that demand curves
shift leftward whenever the price rises.
slope down.
shift rightward whenever the price rises.
slope up.
3. If the United States can increase its production of automobiles without decreasing its production of any other good,
the United States must have been producing at a point
on its PPF.
within its PPF.
beyond its PPF.
None of the above is correct because increasing the production of one good without decreasing the
production of another good is impossible.
4. Which of the following is true?
productive or technical efficiency occurs anywhere on the production possibilities curve
opportunity cost can be measured by the slope of the PPC curve (frontier)
allocative efficiency occurs at a…
The total area under the demand curve of a good,
measures-
(A) Marginal utility
(B) Total utility
(C) Consumer's surplus
(D) Producer's surplus
Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
Knowledge Booster
Similar questions
- 25. According to the following points on a demand curve, which would be the ideal price for a company to sell its product to get the maximum amount of revenue or total income before substituting cost? A. At $75, the quantity demanded per month is five. B. At $50, the quantity demanded per month is 10. C. At $100, the quantity demanded per month is two. D. At $25, the quantity demanded per month is 12.arrow_forward1. The graph below shows the Demand Curve and Supply Curve for a particular item (a) Label the Demand Curve and the Supply Curve. (b) Explain how you know which curve is the Demand curve and which curve is the Supply curve. (c) Label the Equilibrium Point (re. Pe) and mark z, and p, on the appropriate axes. (d) Shade and label the region whose area represents the Producer Surplus. (e) Shade and label the region whose area represents the Consumer Surplus. Show Transcribed Text S 2. The demand function for a product is p product is p²+12r+23. C and the supply function for the same (a) Sketch the graph of both the supply and demand functions (on the same axes) for 0 ≤ ≤ 10. Clearly label the axes and the curves (b) Find the equilibrium point (hint: do this with your calculator). Label the equi- librium point on your graph above. (c) Find the consumer's surplus at the equilibrium point. Show your organized work.arrow_forwarda. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.arrow_forward
- MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Table 3-1 Loose Leaf Tea Price per lb. (dollars) Sunil's Quantity Demanded (lbs) Mia's Quantity Demanded (lbs) Rest of Market Quantity Demanded (lbs) Market Quantity Demanded (lbs) $8 4 0 30 6 7 2 40 5 9 3 51 4 12 5 64 3 15 8 90 12) Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demanded in the market would be 12) ______ A) 51 lbs. B) 63 lbs. C) 76 lbs. D) 146 lbs.arrow_forwardI don't believe the second paragraph where it says "positive" is correct so please correct that and the other blanks. Everything before the second "positive" is correct.arrow_forwardConsumer surplus is: a. the sum of quantity demanded and quantity supplied. b. the difference between quantity demanded and quantity supplied. c. the difference between the income and expenditure of a consumer in the current time period. d. the difference between the most a consumer would be willing to pay for a quantity of a good and what a consumer actually has to pay. e. the ratio of the price of a good to the proportion of income spent on the good.arrow_forward
- 9. a) Explain law of demand, willingness to pay and diminishing marginal benefit briefly? b) What factors cause to demand curves to shift and what is the reason for a movement along the demand curve?arrow_forward10. If supply changes from S2 to S1 and demand changes from D1 to D2 (a) equilibrium price falls to $ 14. (b) equilibrium quantity increases to 16. (c) equilibrium price increases to $19. (d) supply has increased. 11. if demand changed from D1 to D2 as a result of an increase in buyers' income this product is (a) a normal good. (b) a free good. (c) an inferior good. (d) a complementary good. 12. If demand for this product changed from D2 to D1 as a result of a increase in price of a related product, then these two products are (a) complements. (b) inferior goods. (c) economic goods. (d) substitutes. (e) public goods.arrow_forward7. How is the market price of a good determined? When the market for a product is in equilibrium, how will consumers value an additional unit compared to the opportunity cost of producing that unit? Why is this important?arrow_forward
- Give one reason for decrease in supply of a goodarrow_forwardThe table below represents the market for DVDS. The value of consumer surplus is $__________milon (Enter your reaponse as an integer)arrow_forwardProblem 2 The following table shows the behavior of buyers and sellers in a Pizzeria. price per pizza in $ 0.5 1 1.5 2 2.5 3 3.5 quantity requested 280 260 225 170 105 60 35 quantity available 40 135 225 265 290 310 320 a- Draw the demand and supply curves, name the axes. Interpret the shape of the two curves. b- What is the equilibrium price and quantity. c- If the price was initially set at $2, explain how can we return to equilibrium? d- If the price was initially set at $0.5, explain how can we return to equilibrium?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning