When a market is efficient:
A. total surplus is zero.
B. there is no exchange that can make anyone better off without someone becoming worse off.
C. a central planner must be involved.
D. an increase in price will reduce the deadweight loss.
Answer: B
You might also like to view...
As the number of days without rain increases, the amount of wheat grown per acre declines. A graph showing this relationship shows
A) a vertical line. B) a positive relationshi
Monetarists are of the opinion that the private economy is inherently
A. unstable and the public sector should be small in scope. B. unstable and the public sector should be large in scope. C. stable, but that the public sector should be large in scope. D. stable and that the government sector should be small in scope.
Oligopolists often sacrifice economies of scale as they expand product variety
a. True b. False
Technological innovations will cause:
A. the production possibilities curve to stay the same. B. the production possibilities curve to shift to the left. C. the production possibilities curve to shift to the right. D. an economy to operate below its production possibilities curve.