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Microeconomics - Testbank 1 (Hubbard/OBrien) Chapter 4 Economic Efficiency, Government Price Setting, and Taxes 1) If the current market price for a particular book is $30 a unit and a price ceiling is imposed at $20 per book, then: A) a price of $20 per book is the legally allowed maximum price of the book. B) there will an increase in the quantity demanded of the book. C) a shortage of the book will develop at the ceiling price. D) all of these are correct. 2) If the current market price of beer is $10 per six pack and a price floor of $12 per six pack is imposed, then: A) $12 per six pack is the maximum legal price that can be charged. B) quantity demand of beer will rise. C) there will be a surplus of beer in the market at the price floor. D) all of the above. 3) Since a consumers demand curve shows the maximum price a consumer will pay for each unit of the good, it also shows the consumers: A) total benefit. B) average benefit. C) marginal benefit. D) per capita benefit. 4) Marginal benefit is: A) the satisfaction from consuming a given amount of a good. B) the additional satisfaction from consuming one more of a good. C) the satisfaction from consuming a given amount of a good divided by the number of goods consumed. D) the satisfaction from producing one more unit of a good. 5) If you would have been willing to pay $10 for a pizza and you only had to pay $8, what does the difference between $10 and $8 represent? A) Marginal benefit B) Average benefit C) Total benefit D) Consumer surplus 6) Consumer surplus is equal to: A) total area under the demand curve. B) total area under the demand curve down to the market price. C) the vertical distance from the demand curve down to the horizontal axis. D) the area from the demand curve to the supply curve less than the equilibrium quantity. 7) The cost of producing one more unit of a good is: A) total cost. B)