At the equilibrium price, deadweight loss is:
A. minimized.
B. zero.
C. maximized.
D. equal to the equilibrium price multiplied by the quantity exchanged.
Answer: B
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Which type of businesses earns the majority of profits in the United States?
A) corporations B) sole proprietorships C) partnerships D) none of these
When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) maximize consumer surplus and minimize producer surplus. D) increase consumer surplus and increase producer surplus.
Which of the following shocks have been emphasized most often with respect to real business cycle theory?
a. Shocks to technology b. Variations in environmental conditions c. Changes in the real (relative) prices of imported raw materials d. Changes in tax rates e. None of the above