There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized
Indicate whether the statement is true or false
TRUE
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A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied
a. True b. False Indicate whether the statement is true or false
The model predicting victory in a two-person race for the candidate closer to occupying the center of the voter distribution is built on the assumption that
A) people always vote for the Democratic candidate if they are Democrats and for the Republican candidate if they are Republicans. B) people vote for the candidate who comes closer to matching their own views. C) most people don't vote unless the election is predicted to be close. D) none of the above
If the number of automobile manufacturers decreases:
A. the demand for automobiles increases. B. the demand for automobiles decreases. C. the supply of automobiles increases. D. the supply of automobiles decreases.
Socialism in theory is an economic system in which:
A. the invisible hand insures that individual decisions are made for the common good. B. individuals are able to act in the best interest of everyone without direction from government or the invisible hand. C. government owns the means of production, but individual self-interest determines how production is organized. D. government sees to it that people work for the common good until they could be relied upon to do that on their own.