Macroeconomics/Microeconomics
Machine-graded Assessment Items
Module: Surplus
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5.0.0.0 Use the concept of producer, consumer surplus, and total surplus to explain the outcomes of markets for individuals, firms, and society Short Title: Surplus 5.1.0.0 Define and calculate consumer surplus; Graphically illustrate consumer surplus Short Title: Consumer Surplus 5.1.0.1 Which of the following best defines consumer surplus? The social surplus minus producer surplus* Difference between what consumers think a product is worth and what they have to pay for it* The amount a seller is paid for a good minus the seller’s actual cost // Content Page -­‐ Reading: Surplus // Updated: 9/29/2015 answer choices edited 5.1.0.2 Consumer surplus is best described as the extra benefit consumers receive when they ________. § pay less than they would have been willing to pay* § pay more than they would have been willing to pay § pay exactly what they would have been willing to pay // Content Page -­‐ Reading: Surplus 5.1.0.3 Which of the following represents consumer surplus? November 13, 2015 (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/textimgs/Econ+assessment+images/surplus+graph.png) § Area A* § Area B § Area B+A // Content Page – Reading: Surplus 5.1.0.4 Refer to the figure below. Consumer surplus is: How much is the consumer surplus in the figure below? (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/dead-­‐weight-­‐loss.png) § $30* § $60 § $420 // Removed: how to compute the area of a right triangle is not covered in content 5.1.0.4 Which of the following represents social surplus? November 13, 2015 (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/textimgs/Econ+assessment+images/surplus+graph.png) § Area A § Area B § Area B+A* // Content Page – Reading: Surplus // New: 9/29/2015 5.1.a.0 Define and calculate producer surplus; graphically illustrate producer surplus Short Title: Producer Surplus 5.1.a.1 In the following figure, which area represents producer surplus? (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/ECON101-­‐
CLEP_Final_Exam_Q35.png) § Area A § Area B § Area C* // Content Page – Reading: Surplus // Updated: 9/18/15 graph corrected and replaced; question replaced November 13, 2015 5.1.a.2 Which of the following represents producer surplus? (image: https://s3-­‐us-­‐west-­‐2.amazonaws.com/textimgs/Econ+assessment+images/surplus+graph.png) § Area B* § Area A § Area B+A // Content Page – Reading: Surplus // Updated: 9/29/2015 wording of answer choices edited 5.1.a.3 Refer to the figure below. Producer surplus is: (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/dead-­‐weight-­‐loss.png) § $180* § $420 § $60 // Removed: how to compute the area of a right triangle is not covered in content 5.1.a.3 Which of the following areas represents producer surplus? November 13, 2015 (https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/producer-­‐surplus.png) • Area A • Area A+B • Area B* // Content Page – Reading: Surplus // New: 9/29/2015 5.1.b.0 Define and calculate total surplus; graphically illustrate total surplus Short Title: Total Surplus 5.1.b.1 Social surplus is ________. § the sum of consumer surplus and producer surplus* § consumer surplus minus producer surplus § producer surplus minus consumer surplus // Content Page – Reading: Surplus 5.1.b.2 If the social surplus in a market with no government intervention is $500 and consumer surplus is $200, producer surplus is § $300* § $700 § $2.50 // Content Page – Reading: Surplus // Updated: 9/29/2015 edited question and answer choice wording 5.1.b.3 If the consumer surplus is $1000 and the producer surplus is $300, social surplus is § $700 § $1300* § -­‐$700 // Content Page – Reading: Surplus // Updated: 9/29/2015 edited answer choices 5.1.b.4 Refer to the figure below. Total surplus is: November 13, 2015 (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/dead-­‐weight-­‐loss.png) § $210* § $105 § $420 // Removed: how to compute the area of a right triangle is not covered in content 5.1.b.b In the following figure, which area represents total surplus? (img https://s3-­‐us-­‐west-­‐2.amazonaws.com/oerfiles/Assessments/economics/ECON101-­‐
CLEP_Final_Exam_Q35.png) § Area A+B+C* § Area A+B § Area C // Content Page – Reading: Surplus // New: 9/29/2015 November 13, 2015 5.2.0.0 Use the concepts of consumer, producer and total surplus to explain why markets typically lead to efficient outcomes Short Title: Surplus and Inefficiency 5.2.0.1 In a market with an upward sloping supply curve and a downward sloping demand curve, a price floor ________. § creates deadweight loss* § transfers some producer surplus to the consumer § transfers some consumer surplus to the producer* // Content Page – Reading: Inefficiency of Price Floors and Price Ceilings // Updated: 9/18/15 Answer fixed 5.2.0.2 What is the relationship between total surplus and economic efficiency? § An economically efficient market will have the maximum possible total surplus given the supply and demand curves.* § An economically efficient market will have no total surplus given the supply and demand curves. § An economically efficient market will have a larger consumer surplus than producer surplus. // Content Page – Reading: Surplus 5.2.0.3 Compare a market operating at a quantity lower than equilibrium with the same market operating at the equilibrium quantity. Which of the following statements are true? § It is unclear if the consumer surplus is greater or less at the equilibrium quantity.* § The producer surplus is greater at the equilibrium quantity. * § The economic surplus is greater at the equilibrium quantity. * // Content Page – Reading Inefficiency of Price Floors and Price Ceilings // Updated 11/13/2015 answer choices edited November 13, 2015