a.
$700
b.
$600
c.
$200
d.
$100
ANSWER:
d
22. Gary Parker is willing to pay $700 for a new iPad. Apple (the producer of iPads) is selling a new iPad for $600. It costs Apple $400 to produce this iPad. How much economic surplus does Apple receive if Gary purchases this iPad?
a.
$700
b.
$600
c.
$200
d.
$100
ANSWER:
c
23. In a voluntary economic transaction between a buyer and a seller, _____ can earn economic surplus from the transaction.
a.
only the buyer
b.
only the seller
c.
both the buyer and the seller
d.
neither the buyer nor the seller
ANSWER:
c
24. Juan McDonald is willing to pay $600 for a new iPad. Apple (the producer of iPads) is selling a new iPad for $700. It costs Apple $400 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because ____ would be better off due to the transaction.
a.
will; neither Juan nor Apple
b.
will; both Juan and Apple
c.
will not; only Juan
d.
will not; only Apple
ANSWER:
d
25. Juan McDonald is willing to pay $800 for a new iPad. Apple (the producer of iPads) is selling a new iPad for $700. It costs Apple $400 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because ____ would be better off due to the transaction.
a.
will; neither Juan nor Apple
b.
will; both Juan and Apple
c.
will not; only Juan
d.
will not; only Apple
ANSWER:
b
26. Juan McDonald is willing to pay $650 for a new iPad. He offers to pay $600 for an iPad at the Apple store. It costs Apple $700 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because ____ would be better off due to the transaction.
a.
will; neither Juan nor Apple
b.
will; both Juan and Apple
c.
will not; only Juan
d.
will not; only Apple
ANSWER:
c
27. Juan McDonald is willing to pay $900 for a new iPad. He offers to pay $800 for an iPad at the Apple store. It costs Apple $700 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because ____ would be better off due to the transaction.
a.
will; neither Juan nor Apple
b.
will; both Juan and Apple
c.
will not; only Juan
d.
will not; only Apple
ANSWER:
b
28. Ivan has inherited his grandmother's 1963 Chevrolet Corvette, which he values at $50,000. He decides that he might be willing to sell it, so he posts it on Craigslist for $55,000. Samantha is interested and willing to pay up to $72,000 for such a car. A voluntary economic exchange _____ between Ivan and Samantha because _____ positive economic surplus from the transaction.
a.
occurs; both Ivan and Samantha receive
b.
occurs; only Samantha receives
c.
does not occur; only Ivan receives
d.
does not occur; neither Ivan nor Samantha receives
ANSWER:
a
29. Ivan has inherited his grandmother's 1963 Chevrolet Corvette, which he values at $60,000. Samantha is interested in buying the car and offers Ivan $55,000 for the car. Samantha is willing to pay up to $60,000 for such a car. A voluntary economic exchange _____ between Ivan and Samantha because _____ positive economic surplus from the transaction.
a.
occurs; both Ivan and Samantha receive
b.
occurs; only Ivan receives
c.
does not occur; only Samantha receives
d.
does not occur; neither Ivan nor Samantha receives