If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then ?

A. Total surplus is maximized
B. The value placed on the last unit production by buyers exceeds the cost of production.
C. Producer surplus is maximized
D. The cost of production on the last unit produced exceeds the value placed on it by buyers.

The seller’s cost of production is ?

A. None of these answers.
B. The minimum amount the seller is willing to accept for a good
C. The seller’s producer surplus
D. The maximum amount the seller is willing to accept for a good

If a market is efficient then_______?

A. The market allocates buyers to the sellers who can produce the good at least cost
B. All these answers
C. None of these answers
D. The quantity produced in the market maximizes the sum of consumer and producer surplus

Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?

A. Everyone has as much as they would like
B. The benefit buyers place on medical care is equal to the cost of producing it
C. Buyers receive no benefit from another unit of medical care.
D. We must cut back on the consumption of other goods.

Jamil has ten pairs of football boots and saleem has none. A pair of football boots cost Rs50. to produce. If jamil values an additional pair of boots at RS100 and saleem values a pair of boots at Rs40, then the maxime ?

A. Efficiency saleem should receive the glove
B. Efficiency jamil should receive the glove
C. Equity jamil should receive the glove
D. Consumer surplus both should receive a glove

A buyer’s willingness to pay is that buyer’s ?

A. Minimum amount they are willing to pay for a good
B. Producer surplus.
C. Consumer surplus
D. Maximum amount they are willing to pay for a good

An increase in the price of a good along a stationary demand curve ?

A. Improves the material welfare of the buyers.
B. Decrease consumer surplus
C. Improves market efficiency.
D. Increase consumer surplus.

Producer surplus is the area ?

A. Below the supply curve and above the price
B. Below the demand curve and above the supply curve
C. Below the demand curve and above the price
D. Above the demand curve and below the price

Consumer surplus is the area ?

A. Below the demand curve and above the price.
B. Above the supply curve and below the price.
C. Above the demand curve and below the price.
D. Below the supply curve and above the price.

If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

A. Rs18,000
B. Rs20,000
C. Rs2,000
D. Rs0.