When efficiency is attained, the sum of the total amount of consumer surplus and producer surplus is
A) minimized.
B) maximized.
C) equal to the deadweight loss.
D) undefined.
E) equal to zero.
B
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An effluent fee is an example of
A) a government policy to correct for an external benefit. B) a government policy to promote the production of a product with an external cost. C) a government policy to promote the production of a product with an external benefit. D) a government policy to correct for an external cost.
Which of the following is true of resources?
a. Resources are inputs used to produce goods and services. b. Labor is the mental and physical capacity of workers to produce goods and services. c. Entrepreneurship organizes resources to produce goods and services. d. All of these are true.
Real wealth falls, interest rates rise, and the dollar appreciates as the price level
a) remains constant. b) falls slightly. c) rises. d) falls substantially.
Giving up consumption today for consumption tomorrow accelerates economic growth by
A) having the economy produce no consumer goods.
B) increasing saving out of disposable income.
C) increasing the expected rate of inflation.
D) rapid expansion of the money supply.