In the above figure, if the quantity is equal to 2,500,000 units, the deadweight loss is equal to
A) area B + area F.
B) area D + area I.
C) area C.
D) area G + area H.
E) None of the above answers is correct because the deadweight loss is equal to zero.
B
You might also like to view...
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05
If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the second year after an expenditure shock is 1.1, what is the total change in output relative to potential for the second year? A) -1.28% B) -1.73% C) -2.06% D) -5.78%
For the purpose of analyzing the gains and losses from a tax on a good, we use tax revenue as a direct measure of the
a. government's benefit from the tax. b. government's loss from the tax. c. deadweight loss of the tax. d. overall net gain to society of the tax.
If you are in the business of selling chicken and the price of chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?
A. Increase the inventory. B. Keep it the same. C. Get into the beef business. D. Decrease the inventory.
The difference between technology and technological change is that
A) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs. B) technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production. C) technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques. D) technology involves the use of capital equipment while technological change requires the use of brain power.