ECON B 251 EXAM 5 2026 REVISION NOTES
AND STRUCTURED ECONOMIC PRINCIPLES
OVERVIEW GUIDE
◉ In the market above for hot dogs. The producer surplus is $_______
per hour.
A) 240
B) 60
C) 120
D) 6. Answer: B) 60
◉ In the figure above, at the efficient quantity total surplus equals
$____
A) 5
B) 2
C) 9
D) 6. Answer: C) 9
,◉ In the figure above suppose total output is 2 units. At the
equilibrium price, consumer surplus is $______, producer surplus is
$_______, and deadweight loss is $_______.
A) 4,4,1
B) 2,2,2
C) 4,2,1
D) 2,4,2. Answer: A) 4,4,1
◉ Striving to achieve the greatest happiness for the greatest number
is related to which economic concept?
A) the symmetry principle
B) the big tradeoff
C) efficiency
D) utilitarianism. Answer: D) utilitarianism
◉ The symmetry principle in economics means
A) similar individuals must have similar outcomes.
B) all individuals must have similar outcomes.
C) all similar individuals must be treated similarly.
,D) individuals must have different outcomes.. Answer: C) all similar
individuals must be treated similarly
◉ With rent controls, which of the following is most likely to occur?
Choose all that apply.
A) decrease in consumer surplus.
B) Black market activity.
C) An efficient outcome.
D) An overproduction of housing.
E) An increase in search activity. Answer: A) decrease in consumer
surplus; B) Black market activity; and E) An increase in search
activity
◉ The above table shows the market for apartments.
If a rent ceiling is set at a price of $600 per month, then the housing
shortage is ________ apartments.
A) 300
B) 200
C) 0
D) 500. Answer: C) 0
, ◉ The above table shows the market for apartments. If a rent ceiling
is set at a price of $300 per month, then the housing shortage is
________ apartments.
A) 600
B) 500
C) 0
D) 100. Answer: B) 500
◉ At a price ceiling of $4 in the above figure a _______ of _______ units
and a deadweight loss of $ _______ occurs.
A) shortage; 300; 200
B) shortage; 200; 200
C) surplus; 400; 300
D) surplus; 200; 200. Answer: B) shortage; 200; 200
◉ If policy makers believe the equilibrium wage rate is unfairly "too
low," then policy makers can address this issue by imposing a price
_________ __________ the equilibrium wage. As a result, a(n) ________ of
________ occurs.
A) floor; above; surplus; labor
AND STRUCTURED ECONOMIC PRINCIPLES
OVERVIEW GUIDE
◉ In the market above for hot dogs. The producer surplus is $_______
per hour.
A) 240
B) 60
C) 120
D) 6. Answer: B) 60
◉ In the figure above, at the efficient quantity total surplus equals
$____
A) 5
B) 2
C) 9
D) 6. Answer: C) 9
,◉ In the figure above suppose total output is 2 units. At the
equilibrium price, consumer surplus is $______, producer surplus is
$_______, and deadweight loss is $_______.
A) 4,4,1
B) 2,2,2
C) 4,2,1
D) 2,4,2. Answer: A) 4,4,1
◉ Striving to achieve the greatest happiness for the greatest number
is related to which economic concept?
A) the symmetry principle
B) the big tradeoff
C) efficiency
D) utilitarianism. Answer: D) utilitarianism
◉ The symmetry principle in economics means
A) similar individuals must have similar outcomes.
B) all individuals must have similar outcomes.
C) all similar individuals must be treated similarly.
,D) individuals must have different outcomes.. Answer: C) all similar
individuals must be treated similarly
◉ With rent controls, which of the following is most likely to occur?
Choose all that apply.
A) decrease in consumer surplus.
B) Black market activity.
C) An efficient outcome.
D) An overproduction of housing.
E) An increase in search activity. Answer: A) decrease in consumer
surplus; B) Black market activity; and E) An increase in search
activity
◉ The above table shows the market for apartments.
If a rent ceiling is set at a price of $600 per month, then the housing
shortage is ________ apartments.
A) 300
B) 200
C) 0
D) 500. Answer: C) 0
, ◉ The above table shows the market for apartments. If a rent ceiling
is set at a price of $300 per month, then the housing shortage is
________ apartments.
A) 600
B) 500
C) 0
D) 100. Answer: B) 500
◉ At a price ceiling of $4 in the above figure a _______ of _______ units
and a deadweight loss of $ _______ occurs.
A) shortage; 300; 200
B) shortage; 200; 200
C) surplus; 400; 300
D) surplus; 200; 200. Answer: B) shortage; 200; 200
◉ If policy makers believe the equilibrium wage rate is unfairly "too
low," then policy makers can address this issue by imposing a price
_________ __________ the equilibrium wage. As a result, a(n) ________ of
________ occurs.
A) floor; above; surplus; labor
