Deadweight loss refers to a loss in revenue resulting from producers having to reduce their selling price to remain competitive
Indicate whether the statement is true or false
FALSE
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The value of the x-coordinate of a point in a graph is the length of a line from the point to the
A) origin. B) scalar. C) x-axis. D) y-axis.
Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.
Under a consumption-based theory of the pricing of risky assets, uncertain returns on such an asset should be discounted by a "stochastic discount factor" that takes into account: a. the mean and standard deviation of the uncertain return
b. whether the uncertain return has a normal distribution. c. both the nominal and real interest rates. d. the rate of time preference and present and future marginal utility of wealth.
The money creation formula is oversimplified because it assumes that
a. every recipient of a bank loan will redeposit the proceeds in another bank. b. loan recipients will not take any of the proceeds in cash. c. every bank lends out all excess reserves. d. All of the above are correct.