In the above figure, if a subsidy is granted to producers that generates an efficient level of production, then the deadweight loss will be
A) zero.
B) $500
C) $1,000.
D) $2,000.
A
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
What is the difference between net exports and the current account balance?
What will be an ideal response?
Which one is a macroeconomic topic?
a. A business decides to buy new software. b. A person decides to return to college. c. The central bank lowers interest rates to stimulate the economy. d. The government issues new environmental regulations.
On which of the following types of unemployment do macroeconomic tools have the greatest effect?
a. Cyclical unemployment. b. All the above. c. Structural unemployment. d. None of the above e. Seasonal unemployment.