MCQ: An increase in the budget surplus ?

1. Shifts the supply of loanable funds to the left and increase the real interest rate
2. Shift the supply of loanable funds to the right and reduces the real interest rate.
3. Shifts the demand for loanable funds to the right and increases the real interest rate.
4. Shifts the demand for loanable funds to the left and reduces the real interest rate

MCQ: Consumer surplus is the area ?

1. below the demand curve and above the price.
2. above the supply curve and below the price.
3. above the demand curve and below the price.
4. below the supply curve and above the price.
5. below the demand curve and above the supply curve

MCQ: 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 ?

1. Rs18,000
2. Rs20,000
3. Rs2,000
4. Rs0.

MCQ: Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

1. Three vases will be sold, and consumer surplus is Rs80
2. One vase will be sold, and consumer surplus is Rs5.
3. One vase will be sold, and consumer surplus is Rs30
4. Three vases will be sold, and consumer surplus is Rs0.
5. Two vases will be sold, and consumer surplus is Rs5.

MCQ: If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?

1. the value placed on the last unit of production by buyers exceeds the cost of production
2. the cost of production on the last unit produced exceeds the value placed on it by buyers.
3. consumer surplus is maximized
4. total surplus is maximized
5. producer surplus is maximized

MCQ: Total surplus is the area_______________?

1. above the supply curve and below the price
2. below the demand curve and above the price
3. below the demand curve and above the supply curve
4. below the supply curve and above the price
5. above the demand curve and below the price