The attempt to capture consumer surplus, producer surplus, or economic profit is called ________. ...

The attempt to capture consumer surplus, producer surplus, or economic profit is called ________.
 
  A) a natural monopoly
  B) price discrimination
  C) rent seeking
  D) gouging

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Ques. 2

Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?
 
  A) at 10 gallons
  B) at 40 gallons
  C) at 70 gallons
  D) all of the above

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Ques. 3

The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton.
 
  A) 3; 150
  B) 4; 100
  C) 4; 200
  D) None of the above answers is correct.

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Ques. 4

The figure above shows the market for pizza.
 
  a) If the price of a slice of pizza is 3, what is the consumer surplus of the 50th slice?
  b) If the price of a slice of pizza is 3, what is the producer surplus of the 50th slice?
  c) What is the efficient quantity? What is the equilibrium quantity? What is the deadweight loss when the equilibrium quantity is produced?

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Ques. 5

When the government passes a law making a particular good illegal, does it matter for the black market price and quantity if the penalties for breaking the law are imposed on the buyers or on the sellers?
 
  What will be an ideal response?

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Ques. 6

Private information
 
  A) creates moral hazard but eliminates adverse selection.
  B) creates adverse selection but eliminates moral hazard.
  C) creates both moral hazard and adverse selection.
  D) eliminates both moral hazard and adverse selection.

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Ques. 7

In the above figure, the monopolistically competitive firm produces
 
  A) Q3 and sets the price at P3.
  B) Q2 and sets the price at P2.
  C) Q1 and sets the price at P1.
  D) Q1 and sets the price at P5.

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Ques. 8

If there is an excess quantity of money, people will buy bonds.
 
  Indicate whether the statement is true or false

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Ques. 9

For a monopsony, the marginal cost of labor is ________ the wage rate.
 
  A) greater than
  B) less than
  C) equal to
  D) first greater than and later less than

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Ques. 10

Free riding is possible if the good is nonexcludable.
 
  Indicate whether the statement is true or false