Which of the following statements is correct?
a. Total surplus is the sum of consumer and producer surplus.
b. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product.
c. Deadweight loss is a measure of market inefficiency.
d. All of these.
d
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If the price elasticity of demand for moose hunting lessons is 4.23, then the demand for moose hunting lessons is
A) elastic. B) unit elastic. C) inelastic. D) perfectly unit elastic. E) perfectly elastic.
What happened to consumer prices as measured by the CPI between 1929 and 1933?
A) rose by more than 20% B) didn't change C) declined by about 25% D) declined by about 80%
Why is economics called an empirical science?
A) because economics has been used to both create and destroy empires B) because economics uses impressions to evaluate the usefulness of its models C) because economics relies on real-world data to determine the usefulness of a model D) because economics utilizes intuition rather than data to evaluate a model's worth
For every choice a person makes it can be assumed that
A) the chooser has full knowledge of the situation. B) some opportunity cost was involved. C) there is a fifty-fifty chance the choice was the wrong one. D) a good is involved and satisfaction is gained.