Question 1

Which of the following resource allocation methods is most likely to be used when it is difficult to monitor and reward individual effort directly, such as in a sports competition or an awards show?

Accepted Answer

Contest

Question 2

Suppose a city allocates public housing by a lottery system. Which statement best describes the efficiency and fairness of this allocation method?

Accepted Answer

It is fair in terms of opportunity but may not be efficient because it does not allocate to those who value it most.

Question 3

The area under the demand curve and above the market price, up to the quantity bought, represents:

Accepted Answer

Consumer surplus

Question 4

If the market price of a good is $$2 and a consumer is willing to pay 5 $$for the third unit, what is the consumer surplus for that unit?

Accepted Answer

$3

Question 5

Which equation correctly expresses the condition for market efficiency in a competitive equilibrium?

Accepted Answer

$$MSB = MSC$$

Question 6

A deadweight loss occurs in a market when:

Accepted Answer

The quantity produced is less than or greater than the efficient quantity

Question 7

A government imposes a tax on a good. What is the most likely effect on the market outcome?

Accepted Answer

The quantity produced decreases, leading to underproduction

Question 8

Which of the following is an example of an external benefit?

Accepted Answer

A person installing a smoke detector that also protects neighbors

Question 9

If a monopoly is the sole provider of a good, what is the likely result for market efficiency?

Accepted Answer

Underproduction and deadweight loss

Question 10

According to utilitarianism, which of the following best describes the approach to fairness?

Accepted Answer

The greatest happiness is achieved when income is equally distributed

Question 11

Which of the following is a key difference between individual demand and market demand?

Accepted Answer

Market demand is the horizontal sum of all individual demand curves

Question 12

A firm is willing to produce the 100th unit of a good for $$10, but the market price is 15. $$What is the producer surplus for the 100th unit?

Accepted Answer

$5

Question 13

Which of the following is NOT a source of market failure?

Accepted Answer

Perfect competition

Question 14

Suppose a public park is available to everyone and no one can be excluded from its use. What economic problem is most likely to arise?

Accepted Answer

Free-rider problem

Question 15

If the marginal social benefit (MSB) of producing a good exceeds the marginal social cost (MSC), what should happen to the quantity produced to achieve efficiency?

Accepted Answer

Increase the quantity produced

Question 16

Which of the following best describes the symmetry principle in economics?

Accepted Answer

People in similar situations should be treated similarly

Question 17

A market is said to be efficient if:

Accepted Answer

Total surplus (consumer plus producer surplus) is maximized

Question 18

Which of the following is an example of a command allocation system?

Accepted Answer

A company manager assigns tasks to employees

Question 19

If a government subsidy is given to producers of a good, what is the most likely effect on the market?

Accepted Answer

The quantity produced will increase, leading to overproduction

Question 20

Which of the following best describes the 'big tradeoff' in economics?

Accepted Answer

The tradeoff between efficiency and fairness when redistributing income

Efficiency and Equity in Microeconomics: Resource Allocation, Surplus, and Market Outcomes

스터디 가이드 - 연습 문제

학습 가이드 - 플래시카드