Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market is in equilibrium, then producer surplus is represented by:
A. ADFB.
B. CEFD.
C. EGH.
D. BEF.
Answer: B
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Which of the following will not increase a nation's real GDP?
A. number of workers B. average price level C. technological progress D. labor productivity
Answer the following statement(s) true (T) or false (F)
1. The price of a good accurately reflects the total value it creates for society. 2. The Invisible Hand Theorem shows that competitive markets create the maximum possible social gain, even when all interactions among the markets are taken into account. 3. In an Edgeworth box, all Pareto-optimal allocations lie within the region of mutual advantage. 4. In an Edgeworth box economy, a competitive equilibrium must lie on the contract curve within the region of mutual advantage. 5. The gains from international trade are greatest when a country's autarkic relative prices are similar to the world relative prices.
Except for perfect complements, an indifference curve has a ________ slope and becomes ________ moving to the right
A) negative; flatter B) negative; steeper C) positive; flatter D) positive; steeper
An incentive is a concept that addresses which question used by economists?
A. What are the wants and constraints of those involved? B. What are the trade-offs? C. How will others respond? D. Why isn't everyone already doing it?