Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market is in equilibrium, then total surplus is represented by:
A. ABEFD + EFG
B. ABEC + CEFD
C. CDFE + EFG
D. ABEFD - BEF
Answer: B
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Which of the following is an example of the unfairness of rent control?
A) Voluntary exchange is encouraged by rent control. B) Racial discrimination in renting is discouraged by rent control. C) Newcomers have a more difficult time finding apartments. D) Rich people do not get apartments in these markets. E) Too many people rent apartments.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point? A) A B) B C) C D) E
All of the following are types of finance companies EXCEPT
A) government finance. B) consumer finance. C) sales finance. D) business finance.
Spending on education is likely to raise output per person by ________
A) increasing the productiveness of R&D B) by increasing the population C) increasing the fraction of the population engaged in productive activities D) increasing the saving rate