In the figure above, when the market is unregulated and in equilibrium, the deadweight loss is ________ thousand per month
A) $250
B) $125
C) $150
D) $50
E) zero
A
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For a person to have a comparative advantage in producing a product, he must be able to produce that product at a higher opportunity cost than his competitors
Indicate whether the statement is true or false
Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts. b. frictional unemployment created by efficiency wages. c. structural unemployment created by efficiency wages. d. structural unemployment created by sectoral shifts.
In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ___ adjust(s), the nominal interest rate ___ in the long run.
a. the supply of money; rises b. the price level; will revert to its former level c. expectations of interest rates; falls d. real GDP; does not change
In this graph showing welfare effects of a price floor when the government buys the surplus, the cost to the government, area c + d + f + g + h + i, ______.
a. demonstrates that price floors convey a net welfare gain to society b. is larger than the gain to producers, resulting in a deadweight loss c. is equal to the gain to producer and consumers, creating equilibrium d. allows producer surplus to grow while steadily maintaining consumer surplus