When the quantity of a good bought and sold is below the market equilibrium quantity, the loss of total surplus that results is called:
A. producer surplus.
B. deadweight loss.
C. total surplus.
D. consumer surplus.
Answer: B
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When your textbook authors say competition "can be recognized only in motion pictures, not in still photographs," they mean
A) Hollywood is a competitive industry; portrait photography is non-competitive. B) competition is better described as a process, rather than a fixed state of affairs. C) competitors don't sit still. D) competition didn't exist before the advent of motion picture technology.
The supply schedule assumes that factors other than:
A. price remain the same. B. price must change. C. supply remain the same. D. supply must change.
A monopoly is inefficient because: a. consumers are forced to pay higher prices for products
b. firms are able to earn economic profits. c. the cost of increased production is less than the value that society places on it. d. price exceeds marginal revenue.
If Joshua buys 10 percent more compact discs when his income increases by 5 percent, then, for Joshua
a. price elasticity of demand for compact discs is greater than one b. compact discs are inferior goods c. compact discs are price inelastic d. compact discs are income inelastic e. compact discs are income elastic