Tackle the Test: Multiple-Choice Questions

1. Question

   Refer to the graph below. What is the value of consumer surplus when the market price is $40?

   

   A.

   $400

   B.

   $800

   C.

   $4,000

   D.

   $8,000

   E.

   $16,000

2. Question

   Refer to the graph below. What is the value of producer surplus when the market price is $60?

   

   A.

   $100

   B.

   $150

   C.

   $1,000

   D.

   $1,500

   E.

   $3,000
3. Page 497

   Question

   Other things equal, a rise in price will result in which of the following?

   A.

   Producer surplus will rise; consumer surplus will rise.

   B.

   Producer surplus will fall; consumer surplus will fall.

   C.

   Producer surplus will rise; consumer surplus will fall.

   D.

   Producer surplus will fall; consumer surplus will rise.

   E.

   Producer surplus will not change; consumer surplus will rise.

   Other things equal, a rise in price will result in which of the following?

4. Question

   Consumer surplus is found as the area

   A.

   above the supply curve but below the price.

   B.

   below the demand curve but above the price.

   C.

   above the demand curve but below the price.

   D.

   below the supply curve but above the price.

   E.

   below the supply curve but above the demand curve.

   Consumer surplus is found as the area

5. Question

   Allocating kidneys to those with the highest net benefit (where net benefit is measured as the expected increase in life span from a transplant) is an attempt to maximize

   A.

   consumer surplus.

   B.

   producer surplus.

   C.

   profit.

   D.

   equity.

   E.

   respect for elders.

   Allocating kidneys to those with the highest net benefit (where net benefit is measured as the expected increase in life span from a transplant) is an attempt to maximize