Question

4) If we observe trade platforms (like craigslist, facebook marketplace, etc) expanding as more users sign up for the platforms, what is one-word economists might use to describe this activity?

A) Fortunate

B) Efficient

C)Beneficial

D) Costly

E) None of the above

5) Thinking on the margin, what are some reasons economists might use the word you chose in 4 to describe this process?

A) These platforms reduce marginal cost of trading

B) These platforms increase the marginal cost of trading

C) Expansion of the user base is evidence of the marginal benefit

D) None of the above

E) A&C

6) In a closed economy, consumer surplus arises because

A) Some demanders would be willing to pay more than the world price

B) Demanders meet producers who will sell below the market price

C) Some consumers would be willing to pay more than the market clearing price

D) Some producers would sell above market price

7) The supply curve for gasoline

A) Represents the marginal benefit of one gallon of gasoline for a buyer

B) The marginal cost of one gallon of gasoline for various firms in the market

C) Is likely a perfectly vertical straight line

D) All of the above

8) In an open economy for gasoline, if the world price is below the domestic equilibrium price, which of the following is most likely true?

A) Domestic buyers will benefit from the purchase of imported gasoline

B) Some domestic firms will remain competitive while some leave the market

C) Consumer surplus will decrease

D) All of the above

E) A&B

Hey Just need help on these few questions thank you!!

Answer 1

4. Option B.

5. Option E. This would help in achieving increased productivity

6. Option C.

7. Option B. It is the marginal cost above average variable cost

8. Option E. As the lower price would be beneficial for consumers