Consumer surplus is the area ?

Related Mcqs:

1. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?

   A. 20 calculators increase
   B. 25 calculators decrease
   C. 25 calculators increase
   D. 30 calculators increase

2. Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

   A. decreases, decreases
   B. decreases, increases
   C. increases, decreases
   D. increases, increases

3. Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

   A. Z
   B. X
   C. Y
   D. the optimal point cannot be determined from this graph

4. To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. increase, increase
   B. increase, decrease
   C. decrease, increase
   D. decrease, decrease

5. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. 1,600 computers, decrease, increase
   B. 1,600 computers, increase, decrease
   C. 1,200 computers, decrease, increase
   D. 1,200 computers, increase, decrease

6. If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

   A. Rs18,000
   B. Rs20,000
   C. Rs2,000
   D. Rs0.

7. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

8. Concerning economic sanctions, export embargo induces greater losses in consumer surplus for the target country the?

   A. lesser it initial dependence on foreign produce goods.
   B. more elastic the target country demand schedule
   C. greater then available output from alternative suppliers
   D. more in elastic the target country supply scheduleB.

9. Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?

   A. D
   B. A
   C. A + B + E
   D. A + B +C + D

10. Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?

    A. the deadweight has demonstrated
    B. the ability-to-pay principle
    C. the benefits principle
    D. horizontal equity
    E. The administrative burden of a tax.