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Consumers, Producers & Market Efficiency Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. In the graph below, what is the marginal utility for the third bottle of water consumed?

Question 2 2. The ____________ in economics claims that people make choices about purchasing goods or services depending on what is in their best self-interest.

Question 3 3. Susie goes to XYZ Grocery store and walks around to look at all the items that she has available to her for purchase. What is Susie participating in?

Question 4 4. What is the name of the market in which households buy goods from firms?

Question 5 5. A state government offers tax breaks to companies to build factories in their state. If a company takes up this offer and builds a new factory in this state, what will they be reducing?

Page 2

Question 6 6. How does marginal cost differ from total cost?

Question 7 7. According to microeconomics, how are consumers MOST likely to behave in the marketplace?

Question 8 8. Why do businesses care about microeconomic assumptions about consumer behavior?

Question 9 9. At which point do the supply and demand curves meet?

Question 10 10. How many people does an individual demand curve track?

Page 3

Question 11 11. A producer wants to sell a picture frame for $20, which she does. How much was her producer surplus?

Question 12 12. When a producer sells a good for more than the minimum he or she was willing to accept, he or she is getting extra:

Question 13 13. Why is the real equilibrium point difficult to find?

Question 14 14. What will happen when a large segment of the population has increased demand for a product?

Question 15 15. When would a price go below 0?

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Question 16 16. At which point should a producer stop producing goods, according to the law of diminishing marginal returns?

Question 17 17. Calculate the marginal utility between the fifth and fourth slice of pizza in the following chart.

Question 18 18. Calculate the marginal utility between the third and second slice of pizza in the following chart.

Question 19 19. Which one of the following is NOT a resource found in a resource market?

Question 20 20. How are households and businesses related?

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Question 21 21. Which of the following situations demonstrates a failure to maximize utility?

Question 22 22. Louie is a guitar manufacturer. In which of the following examples is he maximizing utility as a producer?

Question 23 23. How is consumer surplus calculated?

Question 24 24. Who determines consumer surplus?

Question 25 25. Which of the following is true of a graph of marginal utility?

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Question 26 26. What model is used to demonstrate markets and the flow of goods between firms and households?

Question 27 27. Which company attempted to reduce their fixed costs at the Rouge River plant and ended up with massive marginal costs?

Question 28 28. What theory is concerned with understanding individual consumer decision making and its impact on businesses?

Question 29 29. A rightward shift of the individual demand curve reflects which of the following?

Question 30 30. A producer wanted to make, at minimum, $4 for a bracelet he made. He ended up selling the bracelet for $10. What is the producer surplus?

Consumers, Producers & Market Efficiency Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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