When is a deadweight loss the greatest?
a. in a highly efficient market
b. in a market with no tax
c. far away from equilibrium
d. at equilibrium
Answer: v
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After graduating from high school, Adam is thinking about going to college. The college tuition is $15,000 a year. Instead of going to college, Adam could take a full-time job that pays $25,000. What is Adam's opportunity cost of attending college for one year?
A. $40,000 B. $15,000 C. $25,000 D. $10,000
Which of the following is likely to increase the total efficiency units of labor in an economy?
A) An increase in the level of education attained by each worker B) An increase in the amount of capital available to each worker C) An increase in the inflation rate in the economy D) An increase in the unemployment rate in the economy
Arrow suggests that any social choice process should be applicable to any set of preferences for individuals -- because we can't be sure individual preferences are always rational.
Answer the following statement true (T) or false (F)
Although there is a strong positive correlation between economic development and democracy, __________ can be considered a notable counterexample.
Fill in the blank(s) with the appropriate word(s).