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chapter 7 economics questions and answers

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1. What name is given to the study of how the allocation of resources affects economic wellbeing? a. consumer economics b. macroeconomics c. welfare economics d. supply-side economics 2. What is ... the likely effect of the equilibrium of supply and demand in a market? a. It maximizes the profits of producers. b. It can only be achieved with government intervention. c. It produces both an efficient and equitable market outcome. d. It maximizes total surplus in a competitive market. 3. What does willingness to pay measure? a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it b. the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept c. the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept d. the maximum amount that a buyer will pay for a good 4. Belva is willing to pay $65.00 for a pair of shoes for a formal dance. She finds a pair at her favourite outlet shoe store for $48.00. What is Belva's consumer surplus? a. $17 b. $31 c. $48 d. $65 5. Suppose Lauren, Leslie, and Lydia all purchase bulletin boards for their rooms for $15 each. Lauren's willingness to pay was $35, Leslie's willingness to pay was $25, and Lydia's willingness to pay was $30. What is the total consumer surplus for these three? a. $15 b. $25 c. $35 d. $45 6. Shannon buys a new CD player for her car for $135. She receives consumer surplus of $25 on her purchase. What is her willingness to pay? a. $25 This study source was downloaded by 100000773243632 from CourseHero.com on 08-12-2021 12:46:39 GMT -05:00 https://www.coursehero.com/file/8167225/Chapter-7-practise-quiz/ T [Show More]

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