Economics 1021A/B Lecture Notes - Lecture 5: Economic Surplus, Avoidance Speech, Marginal Utility

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Economics 1021A/B Lecture 4: Microeconomics: Elasticity: Chapter 4

Economics 1021A/B Lecture Notes - Lecture 5: Economic Surplus, Avoidance Speech, Marginal Utility

Economics 1021A/B Lecture Notes - Lecture 6: Efficient-Market Hypothesis, Deadweight Loss, Economic Surplus

Document Summary

Occurs when we produce the goods and services that people value most. The benefit a person gets from consuming one more unit of a good or service. The opportunity cost of producing one more unit of a good or service. (supply. The difference between what a consumer is willing to pay for a product. The price of a good minus the opportunity cost to produce it. The same product, with the same costs of production, is sold at different. When single market charges more than general market price. When a cost or benefit goes to a third party. **when the market is prevented from working efficiently there is underproduction or overproduction** It"s not fair is the result isn"t fair. Transfer income so no rich and no poor. Income taxes reduce incentive to work, so total pie shrinks. It"s not fair if the rules aren"t fair. The requirement that people in similar situations be treated similarly.

Related Questions

1. Consumer surplus is not

a. the value of a good minus the price paid for it, summed over the quantity bought.

b. greater on the first unit sold than on the last unit sold.

c. greater on the last unit sold than on the first unit sold.

d. equal to the area below the demand curve and above the market price line.

2. The demand curve for hamburgers is the same as the

a. marginal benefit curve for hamburgers.

b. marginal cost curve of hamburgers.

c. consumer surplus curve of hamburgers.

d. All of the above.

3. A supply curve is

a. the same as a production possibilities frontier.

b. a marginal social benefit curve.

c. a marginal benefit curve.

d. a marginal cost curve.

e. a downward-sloping curve.

4. The opportunity cost of producing one more hot dog is $1.00. The price of a hot dog is $1.50. The producer surplus from selling one more hot dog is

a. $1.00

b. $1.50

c. $0.50

d. zero.

e. $2.50

5. Markets may not achieve an efficient allocation of resources when there are

a. external costs.

b. monopolies.

c. taxes.

d. all of the above.

Consider Marginal Cost and Price, and choose the best statement.

a. The price of one more unit of a good or service is its marginal cost.

b. The marginal cost of producing one more unit of a good or service is equal to the marginal benefit.

c. The cost of producing one more unit of a good or service is its marginal cost and we measure the marginal cost as the area above the supply curve and below the market price.

d. The cost of producing one more unit of a good or service is its marginal cost, which is the minimum price that producers must receive to induce them to offer to sell another unit of the good or service.

turquoiseworm20

What is the comparative advantage?

I. The gain from selling a product for more than it costs to produce that product.

II. The gain from consuming a product whose benefit is greater than its cost.

III. The ability of trading partners to produce goods or services at a lower opportunity cost than others.

IV. The ability to produce more of a good or service than competitors using the same amount of resources.

V. The ability to use all available resources to produce output.

Economics 1021A/B Lecture Notes - Lecture 5: Economic Surplus, Avoidance Speech, Marginal Utility

Economics 1021A/B Lecture 4: Microeconomics: Elasticity: Chapter 4

Economics 1021A/B Lecture Notes - Lecture 5: Economic Surplus, Avoidance Speech, Marginal Utility

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Document Summary

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