Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Efficiency and Fairness of Markets CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 6.1 Checkpoint 6.3 Checkpoint 6.5 Question Question 11 Question Question 55 Question Question 99 Question Question 22 Question Question 66 Question Question 10 10 Checkpoint 6.2 Checkpoint 6.4 Question Question 33 Question Question 77 Question Question 44 Question Question 88 CHECKPOINT 6.1 Question If a person will rent an apartment only to married couples over 30 years old, that person is allocating resources using a allocation method A B C D E first-come, first-served market price contest personal characteristics command © 2013 Pearson CHECKPOINT 6.1 Question Allocative efficiency occurs when _ A B C D E the most highly valued goods and services are produced all citizens have equal access to goods and services the environment is protected at all cost goods and services are free production takes place at a point on the PPF © 2013 Pearson CHECKPOINT 6.2 Question Value of a good is _ A the price we pay for the good B the cost of resources used to produce the good C objective so that it is determined by market forces, not preferences D the marginal benefit we get from the good E the price paid for a good minus the marginal cost of producing that unit of the good © 2013 Pearson CHECKPOINT 6.2 Question Suppose the price of a scooter is $200, and Cora Lee is willing to pay $250 for it Cora Lee’s A B C D E consumer surplus from the scooter is $200 consumer surplus from the scooter is $50 marginal benefit from the scooter is $200 consumer surplus from the scooter is $200 consumer surplus from the scooter is $25 © 2013 Pearson CHECKPOINT 6.3 Question A supply curve of a good shows the _ A B C D E producer surplus received from selling the good consumer surplus received from buying the good total benefit from the good marginal cost of producing the good marginal benefit received by the producer of the good © 2013 Pearson CHECKPOINT 6.3 Question Suppose you’re willing to tutor a student for $10 an hour, but the student values your service and pays you $15 an hour What is your producer surplus? A $5 an hour B $10 an hour C $15 an hour D $25 an hour E more than $25 an hour © 2013 Pearson CHECKPOINT 6.4 Question A market is efficient when _ A B C D producers’ income is as high as possible producers’ costs equal consumers’ benefits consumer surplus equals producer surplus scarce resources are used to produce the goods and services that people value most highly E scarcity is eliminated © 2013 Pearson CHECKPOINT 6.4 Question When production moves from the efficient quantity to a point of overproduction, _ A consumer surplus will increase B the sum of producer surplus and consumer surplus will increase C a deadweight loss arises D consumers will lose but producers will gain E consumers gain what producers lose © 2013 Pearson CHECKPOINT 6.5 Question The idea that “unequal income is unfair” generally uses the principle of fairness A B C D E big tradeoff involuntary exchange voluntary exchange it’s not fair if the result isn’t fair it’s not fair if the rules aren’t fair © 2013 Pearson CHECKPOINT 6.5 Question 10 Which of the following is an example in which “the big tradeoff” can occur? A The government redistributes income from the rich to the poor B Ford increases the price of a pickup truck C A basketball player signs a $5 million contract D A college lowers tuition E The price of a personal computer falls year after year © 2013 Pearson ... CHECKPOINT 6.2 Question Value of a good is _ A the price we pay for the good B the cost of resources used to produce the good C objective so that it is determined by market forces, not preferences... the price paid for a good minus the marginal cost of producing that unit of the good © 2013 Pearson CHECKPOINT 6.2 Question Suppose the price of a scooter is $200, and Cora Lee is willing to pay... Question 10 Which of the following is an example in which “the big tradeoff” can occur? A The government redistributes income from the rich to the poor B Ford increases the price of a pickup truck