Figure 3-21
Refer to . At the quantity Q3,
a.
the market is in equilibrium.
b.
consumer surplus is maximized.
c.
the sum of consumer surplus and producer surplus is maximized.
d.
the value to buyers is less than the cost to sellers.
d
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In the above figure, the slope across the arc between c and d is
A) 1/2. B) 1. C) 4/3. D) 2.
The equilibrium wage
a. is the same in all labor markets b. occurs where the supply of labor curve begins to bend backward c. cannot be calculated because there are so many labor markets d. is determined by the market demand for labor and the market supply of labor e. is irrelevant because of unions
When the government provides a public good such as a highway,
a. society benefits without necessarily involving a reallocation of resources b. only highway users benefit and that occurs without necessarily involving a reallocation of resources c. it uses resources, but the benefits are so great there is no resource reallocation effect d. it necessarily reallocates resources away from the production of other goods e. it has the same resource allocation effect on the economy as a government transfer payment
Market-oriented approaches to pollution control are more commonly used when the cost of controlling pollution is easily known by governments and is equal for all firms in the industry
a. True b. False Indicate whether the statement is true or false