1.deadweight losses occur when the quantity of an output
produced is
A.less than or greater than the competitive equilibrium
quantity.
B.greater than the competitive equilibrium quantity.
C.less than the competitive equilibrium quantity.
D.such that the marginal benefit of the output is just equal to
the marginal cost
2.The intention of a price ceiling is to help consumers by
forcing a price that is below the equilibrium price. What is one
unintended consequence of this policy?
rev:
Multiple Choice
a.Foreign producers are hurt by the lower price and economic
surplus is increased.
b.Producers face a shortage or resources and economic surplus is
decreased.
c.Consumers face a shortage of the good and increased consumer
surplus.
d.Consumers face a shortage of the good and decreased consumer
surplus
3.The intention of a price ceiling is to help consumers by
forcing a price that is below the equilibrium price. What is one
unintended consequence of this policy?
a.Foreign producers are hurt by the lower price and economic
surplus is increased.
b.Producers face a shortage or resources and economic surplus is
decreased.
c.Consumers face a shortage of the good and increased consumer
surplus.
d.Consumers face a shortage of the good and decreased consumer
surplus.
4.The difference between the actual price that a producer
receives and the minimum acceptable price the producer is willing
to accept is called the producer
costs.
revenues.
utility.
5.
Producer surplus
a.is the difference between the maximum price consumers are
willing to pay for a product and the lower equilibrium price.
b.is the difference between the minimum price producers are
willing to accept for a product and the higher equilibrium
price.
c.rises as equilibrium price falls.
d.is the difference between the maximum price consumers are
willing to pay for a product and the minimum pr ice producers are
willing to accept.
Answer
