The diagram above depicts the demand for, and market price of, buckets of raw oysters in Orlando
a. What is the consumer surplus of the person who buys the 100th bucket of oysters?
b. What is the consumer surplus of the person who buys the 200th bucket of oysters?
c. What is the consumer surplus of the person who buys the 300th bucket of oysters?
d. What is the total consumer surplus from all the oysters consumed in the market?
a. The consumer surplus of the person who buys the 100th bucket of oysters is $6.
b. The consumer surplus of the person who buys the 200th bucket of oysters is $3.
c. The consumer surplus of the person who buys the 300th bucket of oysters is $0.
d. The total consumer surplus in the market is $1,350.
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Figure 11-4
Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state. Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price. The situation facing Dr. Casey is depicted in Figure 11-4. Units of medical service (say, number of patients × number of visits) are measured on the horizontal axis. How many units of medical service will Dr. Casey deliver to Medicaid patients?
A. OA B. AC C. OC D. OD
Without government intervention, public goods tend to be
a. overproduced and common resources tend to be overconsumed. b. overproduced and common resources tend to be underconsumed. c. underproduced and common resources tend to be overconsumed. d. underproduced and common resources tend to be underconsumed.
As an alternative to pairwise majority voting, each voter could be asked to rank the possible outcomes, giving 1 point to her lowest choice, 2 points to her second-lowest choice, 3 points to her third-lowest choice, and so on. This voting method is called a(n)
a. median vote. b. pairwise minority vote. c. Borda count. d. Arrow count.
When government owns a natural monopoly, it can:
A. at a loss. B. make business decisions based on political pressures. C. lose the incentive to be efficient. D. All of these statements are true.