Source: https://www.youtube.com/watch?v=ictUYjkQeZU

1/ When a consumer is willing to pay $300 for an MP3 player that has a market price of $250, the consumer surplus is:

$550.

$75,000.

-$50.

$50.

2/ When a consumer is willing to pay $300 for an MP3 player that has a market price of $250, Paul Solman says that:

The producer of the MP3 player obtains a bonus.

The consumer of the MP3 player obtains a bonus.

The result is not fair.

The result is not efficient.

3/ When a producer is willing to sell an MP3 player for $200 that has a market price of $250,the producer surplus is:

-$50.

$50,000.

$450.

$50.

4/ When a producer is willing to sell an MP3 player for $200 that has a market price of $250, Paul Solman says that:

The result is not efficient.

The producer of the MP3 player obtains a bonus.

The consumer of the MP3 player obtains a bonus.

The result is not fair.

5/ A market equilibrium is efficient because it results in:

The largest possible surplus.

Consumer surplus greater than producer surplus.

No surplus at all.

Producer surplus greater than consumer surplus.

6/ The point of Cecilia Conrad's pecan pie story is that:

Efficiency guarantees fairness.

We should not subsidize pecan growers.

An efficient allocation need not be fair.

Economic growth is important because it produces a larger pie.

7/ Efficiency and fairness require trade-offs.

True

False