Deadweight loss occurs when
A) producer surplus is greater than consumer surplus.
B) the maximum level of total welfare is not achieved.
C) consumer surplus is reduced.
D) an inferior good is consumed.
B
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Use the above table. The MPC is
A) 0.09. B) 0.20. C) 0.80. D) 0.91.
In Figure 3-6 above, income and actual expenditures are equal at
A) point J. B) point K. C) point L. D) all of the above.
The expected value of a basket with different outcomes is
a. the average of the values of the different outcomes. b. the average of the values of different outcomes multiplied by the average of the probabilities of the outcomes. c. the sum of the values of the different outcomes. d. the sum of the value of each outcome multiplied by its probability.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?
a.
(1)
b.
(2)
c.
(3)
d.
(4)