Suppose a new policy allocates kidneys to patients needing a kidney transplant on the basis of who would receive the highest net benefit in terms of the expected increase in life span from a transplant. This policy would essentially be an attempt to maximize a. consumer surplus. b. producer surplus. c. profit. d. equity. e. respect for elders.

At market equilibrium in a competitive market, which of the following is necessarily true? I. Consumer surplus is maximized. II. Producer surplus is maximized. III. Total surplus is maximized. A. I only B. II only C. III only D. I and II only E. I, II, and III.

Refer to the graph below. What is the value of producer surplus when the market price is $\$ 60$ ? a. $\$ 100$ b. $\$ 150$ c. $\$ 1,000$ d. $\$ 1,500$ e. $\$ 3,000$

Other things equal, a rise in price will result in which of the following? A. Producer surplus will rise; consumer surplus will rise. B. Producer surplus will fall; consumer surplus will fall. C. Producer surplus will rise; consumer surplus will fall. D. Producer surplus will fall; consumer surplus will rise. E. Producer surplus will not change; consumer surplus will rise.

Which of the following leads to a more inelastic price elasticity of supply? I. the use of inputs that are easily obtained II. a high degree of substitutability between inputs III. a shorter time period in which to supply the good A. I only B. II only C. III only D. I and II only E. I, II, and III

Refer to the graph below. What is the value of consumer surplus when the market price is $\$ 40$ ?

a. $\$ 400$ b. $\$ 800$ c. $\$ 4,000$ d. $\$ 8,000$ e. $\$ 16,000$

An effective minimum wage law a. is an example of a price ceiling. b. benefits all workers. c. reduces the quantity of labor supplied. d. reduces the quantity of labor demanded. e. is all of the above.

An airline flies the same route at the same time each day. The flight time varies according to a Normal distribution with unknown mean and standard deviation. On 15% of days, the flight takes more than an hour. On 3% of days, the flight lasts 75 minutes or more. Use this information to determine the mean and standard deviation of the flight time distribution.

The amount of time Ricardo spends brushing his teeth follows a Normal distribution with unknown mean and standard deviation. Ricardo spends less than one minute brushing his teeth about 40% of the time. He spends more than two minutes brushing his teeth 2% of the time. Use this information to determine the mean and standard deviation of this distribution.

Professional tennis player Novak Diokovic hits the ball extremely hard. His first-serve speeds can be modeled by a Normal distribution with mean 112 miles per hour (mph) and standard deviation 5 mph. How often does Djokovic hit his first serve faster than 120 mph?

If there is an increase in the price of an inferior good on which consumers spend a large share of their income, which of the following will decrease the quantity of that good demanded? A. the Giffen effect B. the income effect only C. the substitution effect only D. the income effect and the substitution effect E. neither the income effect nor the substitution effect

Which of the following is likely to have the highest price elasticity of demand? A. eggs B. beef C. housing D. gasoline E. foreign travel

Which of the following is true of real GDP? I. It is adjusted for changes in prices. II. It is always equal to nominal GDP. Ill. It increases whenever aggregate output increases. A. I only B. II only C. III only D. I and III E. I, II, and III

Which of the following describes what will happen in the market for tomatoes if a salmonella outbreak is attributed to tainted tomatoes? A. Supply will decrease and price will increase. B. Supply will decrease and price will decrease C. Demand will decrease and price will increase D. Demand will decrease and price will decrease. E. Supply and demand will both decrease.