The social cost associated with the distortion in consumption from a monopoly price is called
A. patent protection.
B. marginal cost.
C. government failure.
D. deadweight loss.
Answer: D
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Which of the following is most likely to occur in the labor market during a recession?
A. The growth rate of real wages declines. B. New entrants to the labor market have an easier time finding jobs. C. Bonuses and promotions become more frequent. D. The supply of labor increases dramatically.
At every point on the IS curve, the level of income on the horizontal axis equals
A) planned autonomous spending. B) planned autonomous spending times the multiplier. C) planned autonomous spending divided by the multiplier. D) planned expenditures times the multiplier.
An article in the textbook suggests that one method to correct the higher education inefficiency is to
a. provide free higher education to all Americans. b. have college students sell equity in themselves. c. reduce interest rates on student loans. d. increase the number of colleges and universities in the United States.
In oligopoly, the actions of one firm have a perceptible effect on the other firms.
Answer the following statement true (T) or false (F)