Title: QUIZ: Sold Fast: Price Tags and the Impact on Consumer and Producer Surplus -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Sold Fast: Price Tags and the Impact on Consumer and Producer Surplus -- Page One Economics®

Q: What innovation did John Wanamaker introduce to his department store?
- A loyalty rewards program
- A delivery service
- Transparent prices for all items
- A mail-order catalog
A: Transparent prices for all items

Q: What is consumer surplus?
- The total amount of money a consumer spends on a product
- The profit a producer makes from selling a product
- The difference between the price a consumer is willing to pay and the actual price paid
- The difference between the cost of producing a product and the price for which it is sold
A: The difference between the price a consumer is willing to pay and the actual price paid

Q: What is producer surplus?
- The difference between the price a producer is willing to accept and the actual price received
- The total amount of money a producer earns from selling a product
- The profit a consumer gains from purchasing a product
- The difference between the price a consumer pays and the cost of producing the product
A: The difference between the price a producer is willing to accept and the actual price received

Q: What is total surplus?
- The sum of consumer surplus and producer surplus
- The total amount of money spent in a market
- The difference between the highest and lowest prices in a market
- The total profit earned by all producers in a market
A: The sum of consumer surplus and producer surplus

Q: How does a lack of fixed prices in a market affect economic analysis?
- It makes it easier to calculate consumer and producer surplus.
- It makes it more difficult to calculate consumer and producer surplus.
- It makes government price controls such as minimum wage meaningless.
- It makes it easier to measure the impact of taxes and subsidies.
A: It makes it more difficult to calculate consumer and producer surplus.

Q: How do clearly defined prices affect market transactions?
- Increases negotiation time
- Decreases the number of transactions
- Saves time and increases efficiency
- Confuses buyers and sellers
A: Saves time and increases efficiency

Q: What does the term “equilibrium price” refer to in economic transactions?
- A state where all prices are negotiable
- A market dominated by consumer preferences
- A situation where no transactions occur
- A price that maximizes total surplus for consumers and producers
A: A price that maximizes total surplus for consumers and producers

Q: As more consumers enter a market with various limits on the prices they are willing to pay, the consumer surplus line gradually will transform into the
- supply curve.
- demand curve.
- price floor.
- price ceiling.
A: demand curve.

Q: As more producers enter a market with various limits on the prices at which they are willing to sell, the producer surplus line gradually will transform into the
- demand curve.
- price floor.
- price ceiling.
- supply curve.
A: supply curve.