Question 1
What is meant by tax?
A.
S = D. B.
Difference between price received and minimum acceptable price. C.
Can reduce consumer surplus. D.
Changes both surpluses.
Question 2
What is meant by equilibrium?
A.
Difference between price received and minimum acceptable price. B.
S = D. C.
Changes both surpluses. D.
Can reduce consumer surplus.
Question 3
What is meant by welfare?
A.
Total surplus measures market benefit. B.
Can increase consumer surplus. C.
Maximum price a consumer would pay. D.
S = D.
Question 4
What is meant by deadweight loss?
A.
Lowest price a producer would accept. B.
S = D. C.
Changes both surpluses. D.
Lost surplus from inefficiency.
Question 5
What is meant by shift in supply?
A.
Changes both surpluses. B.
Lowest price a producer would accept. C.
Total surplus measures market benefit. D.
Maximum price a consumer would pay.
Question 6
Consumer surplus is:
A.
Total revenue B.
Price minus cost C.
WTP minus actual price D.
Tax revenue
Question 7
What is meant by subsidy?
A.
Difference between willingness to pay and price paid. B.
Total surplus measures market benefit. C.
Difference between price received and minimum acceptable price. D.
Can increase consumer surplus.
Question 8
A rise in equilibrium price will:
A.
Eliminate demand B.
Have no effect C.
Always increase CS D.
Reduce consumer surplus
Question 9
What is meant by consumer surplus?
A.
Can increase consumer surplus. B.
Changes both surpluses. C.
Can reduce consumer surplus. D.
Difference between willingness to pay and price paid.
Question 10
What is meant by producer surplus?
A.
Difference between willingness to pay and price paid. B.
Maximum price a consumer would pay. C.
Total surplus measures market benefit. D.
Difference between price received and minimum acceptable price.
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