Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

161) Producer surplus is the area

Answer is:

above the supply curve and below the price

162) If a benevolent social planner chooses to produce less than the equilibrium quantity of a good, then

Answer is:

the value placed on the last unit of production by buyers exceeds the cost of production

163) If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then

Answer is:

the cost of production on the last unit produced exceeds the value placed on it by buyers

164) The seller’s cost of production is

Answer is:

the minimum amount the seller is willing to accept for a good

165) Total surplus is the area

Answer is:

below the demand curve and above the supply curve

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