D Question 1 1 pts Resource allocation by using Majority Rule means O 100% of the voter chose. more than 51% of the voter chose. O more than 50% of the voter chose. O the option majority of the voter choose. D Question 2 1 pts An oil painting has an opportunity cost of $1,000. The painting was purchased for $1,500. How much consumer surplus did the buyer obtain? O $1500 O cannot be determined from the information given $500 zeroD Question 3 1 pts Bill and Ted each consume 15 chocolate bars at the current price. If Bill's demand for chocolate bars is more elastic than Ted's demand, then O Ted's consumer surplus is greater than Bill's. O Bill's consumer surplus equals Ted's. O Bill's consumer surplus is greater than Ted's. O Ted's willingness to pay for the last chocolate bar is greater than Bill's. D Question 4 1 pts A product has a marginal benefit of $1,500. It was bought for $1,200. How much consumer surplus did the seller obtain? O $300 O cannot be determined with the given information O $1,000 O $1,500D Question 5 1 pts The marginal cost is given in the following table. If the firm sells all 5 units at $7 a piece, what is the total producer surplus of the firm. Quantity Marginal (Number Cost ($) of Movies) 1 4.25 2 4.50 3 5.00 4 5.50 5 6.00 O $7 O $9.75 O $1 O $28D Question 6 1 pts A monopoly leads to O zero deadweight loss. O efficient production. O overproduction. O underproduction. D Question 7 1 pts Deadweight loss is O the social loss from inefficiency. O borne entirely by consumers. O gained by producers O the social loss from efficiency.Question 8 1 pts Refer to Figure below. The graph shows the market for cell phones. When production is efficient, total surplus is and the cost of producing the cell phones sold is Price [dollars per cell phone) 70 60 50 40 30 20 10 50 100 150 200 Quantity (cell phones per month) O $2,250; $2,250 O $750; $1,500 $2,250; $3,000 O $1,500; $2,250Question 9 1 pts Refer to Figure below, If the price is Po, consumer surplus is Price P. F Quantity O B pins C O A plus B O D plus E O A plus B plus CD Question 10 1 pts A market supply curve is constructed by O adding the prices all consumers are willing to pay for any given quantity. O adding the quantities demanded by all individuals at each price. O determining the quantity supplied by all producers at all possible prices. O subtracting the quantity demanded by all individuals from the quantity supplied by all producers at each price. D Question 11 1 pts An illegal market in which the equilibrium price exceeds the price ceiling is O an efficient market. O a rental market. O a housing market. O a black market.Question 12 1 pts Refer to Figure below. If a rigorously enforced price ceiling is set at $20, Price (dollars per unit per month) 25 20 15 10 - X 50 100 150 200 250 Quantity (units per month! O 200 units will be sold at a price of $20 each. 100 units will be sold at a price of $20 each. O 200 units will be sold at a price of $15 each. 150 units will be sold at a price of $15 each.D Question 13 1 pts An effective rent ceiling O creates a deadweight loss. O increases producer surplus. O increases consumer surplus. O increases the supply of housing. D Question 14 1 pts Complete the following sentence. A price floor set below the equilibrium price results in O an increase in supply. O a surplus. O the equilibrium price. O a shortage.D Question 15 1 pts Suppose the demand for gasoline is inelastic, but not perfectly inelastic, and the supply is elastic, but not perfectly elastic. A tax on gasoline is paid O mostly by sellers. O mostly by buyers. O equally by buyers and sellers. O totally by buyers. D Question 16 1 pts If the price of a good is not affected by a tax, then O supply is perfectly elastic. O demand is unit elastic. O demand is perfectly elastic. O the elasticity of supply is greater than elasticity of demand.D Question 17 1 pts If the supply of a good is perfectly inelastic, then a tax on the good will be paid O mostly but not completely by the buyers. O equally by the buyers and sellers. O completely by the buyers. O completely by the sellers. D Question 18 1 pts A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is marginal social cost and the level of production is O equal to; efficient O greater than; efficient O less than; inefficient O less than; efficientD Question 19 1 pts An effective production quota O is efficient because it results in underproduction. O is efficient for quantities below the equilibrium quantity and is inefficient for quantities above the equilibrium quantity O is inefficient because it results in underproduction. O is efficient because it results in overproduction. D Question 20 1 pts A subsidy is a O payment made by foreign governments to domestic farmers. O payment made by the government to a producer. O tax imposed by the government on imported goods. O tax imposed by the government on a producer