Answer the following True or false questions. True or false?

1. Total surplus is the seller's cost minus the buyer's willingness to pay.
2. A Price floor set above the equilibrium price is a binding constraint.
3. Producer surplus is the area above the supply curve and below the price.
4. When Economist make positive statements, they are more likely to be acting as scientist.
5. If a market generates a negative externality, a Pigovian tax will move the market towards a more efficient outcome.
6. For a competitive firm, a marginal revenue equals the price of good it sells.
7. Consumer surplus is the buyer's willingness to pay minus willingness to pay minus the seller's cost.
8. Consumer surplus is the buyers willingness to pay minus the sellers cost.
9. The production possibility frontier is bowed outward because the trade-offs between the production of any two goods are constant.
10. Microeconomics is concerned with the study of how households and firms makes decisions and how they interact in specific markets.
11. The average total cost curve crosses the marginal cost curve at the minimum of the marginal cost curve.
12. if he price of a good rises above the minimum average total cost of production, positive economic profit will cause new firms to enter the market, which drives the price back down to the minimum average total cost of production.
13. Average total costs divided by marginal costs.
14. A tax always makes a market less efficient.
15. If a foreign country subsidizes it export industries, its tax payers are paying to improve the welfare of the consumers in the importing countries.
16. The two main types of market failure are market power and externalities.
17. To a student, the opportunity cost of going to a football match could include the price of the ticket and the value of the time that could have been spent studying.
18. If n economy is operating on its production possibilities frontier, it must produce less of one good it produces more of another.
19. Producer surplus is a measure of the unsold inventories of suppliers in a market.
20. The major advantage of allowing free markets to allocate recourses is that the outcome of the allocation is efficient.
21. The law of supply states that an increase in the price of a good increases the quantity supplied of that good.
22. A monopoly is the sole seller of a produce with no close substitutes.
23. Externalities are side effects, such as pollution, that are not taken into account by the buyers and sellers in the market.
24. Consumer surplus is a good measure of buyer's benefits if buyer's are rational.
25. A positive externality s an external benefit that accrues to the buyer's in a market whine a negative externality is an external cost that accrues to the sellers in the market.
26. Total revenue equals the quantity of output the firm produces times the price at which it sells its output.
27. In a competitive market, both buyer's and sellers are price takers.
28. If there is an increase in supply accompanied by a decrease in demand for coffee, then there will be a decreasing both the equilibrium price and quantity in the market for coffee.
29. If there are implicit costs of production, accounting profits will exceed economic profits.
30. If pencils and paper are complements, an increase in the price of pencils causes the demand for paper to decrease or shift o the left.
31. An individual farmer is likely to have market power in the market for wheat where there are many farmers of whet.
32. When the government redistributes income with taxes and welfare, the economy becomes more efficient.
33. When marginal cots are below average total costs, average total costs must be falling.
34. In the long run, perfectly competitive firms earn small but positive economic profits.
35. In the long run, perfectly competitive firms earns small but positive economic profits.
36. If workers and firms agree on an increase n wages based on their expectations of inflation and inflation turns out to be less than they expected, works will gain at the expense of the firm.
37. If workers and firms agree on an increase in wages based on their expectations of inflation and inflation turns out to be less than they expected, workers will gain at the expense of firms.
38. A price ceiling set below equilibrium price causes a surplus.
39. The law of demand states that an increase in the price of a good decreases the demand for that good.
40. The demand cure facing a monopolist is the market demand curve for its product.
41. If a firm continues to employ more workers within the same size factory, t will eventually experience diminishing marginal product.
42. If there is a shortage of a good , then the price of that good tends to fall.
43. If consumers expect the price of shoes to rice, there will be an increase in the demand for shoes today.
44. A firm maximizes profits when it produces output up to the point when marginal cost equals marginal revenue.
45. If medicine is a necessity, the burden of a tax on medicine will probably fail more heavily on the buyers of medicine.
46. If a market generates a negative externality, the social cost curve s above the supply (private supply curve)
47. The monopolists chooses the quantity at which marginal revenue equals marginal cost and then the demand curve o find the price that will induce consumers to buy that quantity.
48. If an economy is operating on its possibilities frontier, it must be using its resources efficiently.
49. For the monopolist, marginal revenue is always less than the price of the good.
50. A tax on alcoholic drinks raises the price of alcohol drinks and provides an incentive for consumers to drink more.
51. If gold club and gold bats are complements, an increase in the price of golf clubs will decrease the demand for golf balls.
52. A tariff raises the price of a good, reduces the domestic quantity demanded, increases the domestic quantity supplied, and increases the quantity imported.
53. If competitive firms sells thee times the amount of output, its total revenue also increases by a factor of three.
54. If Coke and Pepsi are substitute, an increase in the price of Coke will cause an increase in the equilibrium price and quantity in the market for Pepsi.
55. The majority of Economists do not like the idea of putting a price on polluting the environment.
56. A $10 tax on football boots will always raise the price that the buyers pay for football boots by $10.
57. If, as te quantity produced increases, a production function first exhibits increasing marginal products and later diminishing marginal product, the corresponding marginal cost curve will be U-shaped.
58. Fixed costs plus variable costs equal total costs.
59. When marginal costs are below average total costs, average total costs must be failing.
60. Producer surplus is the area above the supply curve and below the price.
61. In a competitive market, both buyers and sellers are price takers.
62. The monopolist chooses the quantity of output at which marginal revenue equals marginal costs and then uses the demand curve to find the price that will induce consumers to buy that quantity.
63. An individual farmer is likely to have market power in the market for wheat where there are many farmers of wheat.