Q1. For a given good or service, the marginal social benefit (MSB) and the marginal social cost (MSC) curves are least accurately described by which of the following? A) Producer surplus is determined by price and the MSC curve and consumer surplus is determined by price and the MSB curve. B) The efficient allocation of resources occurs where the difference between the MSB and MSC curves is maximized. C) The sum of consumer and producer surpluses is maximized at the intersection of the MSB and MSC curves.
Q2. Equilibrium in a perfectly competitive market results in a quantity for which the: A) producer surplus equals zero. B) consumer and producer surpluses are equal. C) sum of consumer and producer surpluses is maximized.
Q3. Which of the following conditions exists when the economic gain to society is maximized? A) The price and quantity for a good or service is such that producer surplus equal zero. B) The price and quantity for a good or service is such that consumer and producer surpluses are equal. C) The sum of consumer and producer surpluses for a good or service is maximized. | 
发表于 2008-12-31 09:46
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