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Surplus

Jamil has ten pairs of football boots and saleem has none. A pair of football boots cost Rs50. to produce. If jamil values an additional pair of boots at RS100 and saleem values a pair of boots at Rs40, then the maxime ?

Economics Mcqs, Surplus /
Jamil has ten pairs of football boots and saleem has none. A pair of football boots cost Rs50. to produce. If jamil values an additional pair of boots at RS100 and saleem values a pair of boots at Rs40, then the maxime ?

A. efficiency Saleem should receive the glove
B. Efficiency Jamil should receive the glove
C. equity Jamil should receive the glove
D. consumer surplus both should receive a glove

Jamil has ten pairs of football boots and saleem has none. A pair of football boots cost Rs50. to produce. If jamil values an additional pair of boots at RS100 and saleem values a pair of boots at Rs40, then the maxime ? Read More »

Economics Mcqs, Surplus

Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?

Economics Mcqs, Surplus /
Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?

A. everyone has as much as they would like
B. the benefit buyers place on medical care is equal to the cost of producing it
C. buyers receive no benefit from another unit of medical care.
D. we must cut back on the consumption of other goods.

Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ? Read More »

Economics Mcqs, Surplus

In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?

Economics Mcqs, Surplus /
In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?

A. choose a price below the market equilibrium price
B. allow the market to seek equilibrium on its own.
C. Choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).
D. choose a price above the market equilibrium price

In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should? Read More »

Economics Mcqs, Surplus

If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

Economics Mcqs, Surplus /
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

A. the value placed on the last unit of production by buyers exceeds the cost of production
B. the cost of production on the last unit produced exceeds the value placed on it by buyers.
C. consumer surplus is maximized
D. total surplus is maximized
E. producer surplus is maximized

If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ? Read More »

Economics Mcqs, Surplus

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 ?

Economics Mcqs, Surplus /
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.

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 ? Read More »

Economics Mcqs, Surplus

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 ?

Economics Mcqs, Surplus /
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.

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 ? Read More »

Economics Mcqs, Surplus