Deadweight losses occur when the quantity of an output produced is
A. such that the marginal benefit of the output is just equal to the marginal cost.
B. greater than the competitive equilibrium quantity.
C. less than or greater than the competitive equilibrium quantity.
D. less than the competitive equilibrium quantity.
Answer: C
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What has been the reaction of many governments to the failure of central planning?
What will be an ideal response?
Loud music from a neighbor's party is
A) a negative externality whether or not you like it. B) a positive externality whether or not you like it. C) a positive externality if you like the music, and a negative externality if you don't. D) a negative externality if you like the music, and a positive externality if you don't. E) not an externality.
Which of the following would be counted in U.S. GDP?
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Small differences in annual growth rates of real GDP generate large differences in real GDP over time because of the:
A. diminishing returns to capital. B. importance of average labor productivity. C. limits of economic growth. D. power of compound interest.