A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false
True . The government expenditure more than offset the gains to consumer and producer surplus, resulting in a deadweight loss.
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Saving and investment that increase a nation's capital lead to
A) slower growth because there is a lack of consumption. B) a decrease in labor productivity as capital is used to replace labor. C) a decrease in the amount of capital per worker. D) an increase in labor productivity.
Which of the following is true?
a. Families are getting bigger, across most populations b. The U.S. is growing older, median age is rising c. Minority groups are slowing down, getting smaller d. There are 59 federally recognized Indian tribes in the United States
The spending multiplier tells us the:
A. amount by which GDP increases when spending increases by $1. B. amount by which GDP decreases when spending on capital goods increases by $1. C. fraction of each dollar that will decreases GDP of each dollar spent. D. amount by which spending increases when GDP increases by $1.
Dean should play golf instead of preparing for tomorrow's exam in economics if:
A. he is irrational. B. Dean can play golf for free. C. the economic surplus from playing golf is greater than the economic surplus from studying. D. the benefit of golfing is greater than the benefit of studying.