Based on this graph for the welfare effects of a subsidy, when does the deadweight loss start?



a. when the demand rises above the quantity at E1

b. when the supply rises above the quantity at E1

c. when the supply rises above the quantity at E2

d. when the demand drops below the quantity at E2


b. when the supply rises above the quantity at E1

Economics

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The current account

A) measures our exports minus our imports taking into account interest payments paid to and received from the rest of the world. B) measures our imports minus our exports. C) does not account for interest payments paid to and received from the rest of the world. D) is part of GDP.

Economics

Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?

A) Bank total reserves would decrease. B) Bank checking account balances would decrease. C) Required reserves would increase. D) The economy would likely enter into a recession. E) Individual banks would have to shrink the value of loans they made.

Economics

What is necessary for fiscal policy to be sustainable? Why is fiscal policy in countries like Greece, Ireland, Spain, Italy and Portugal not considered sustainable?

What will be an ideal response?

Economics

Since its beginning, the cable television industry has been viewed as a natural monopoly. Typically, cities would grant individual firms local monopolies and then regulate them. Is this a valid approach from an economic perspective? What do you expect the future of the television-viewing market to hold?

Economics