Deadweight losses occur when the quantity of an output produced is:
A. less than, but not when it is greater than, the competitive equilibrium quantity
B. greater than, but not when it is less than, the competitive equilibrium quantity
C. less than or greater than the competitive equilibrium quantity
D. such that the marginal benefit of the output is just equal to the marginal cost
C. less than or greater than the competitive equilibrium quantity
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Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy will buy
A) more cookies and less hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate. B) more cookies and less hot chocolate, which increases his marginal utility from cookies and decrease his marginal utility from hot chocolate. C) fewer cookies and more hot chocolate, which decreases his marginal utility from cookies and increases his marginal utility from hot chocolate. D) fewer cookies and more hot chocolate, which increases his marginal utility from cookies and decreases his marginal utility from hot chocolate.
Which of the following is the best example of a disruptive market change related to international trade?
a. a domestic manufacturer opens a new state-of-the-art facility in the home country b. an international manufacturer opens a new state-of-the-art facility in the home country c. an international manufacturer develops a completely robotic manufacturing process d. a domestic manufacturer replaces one international supplier with another international supplier
All else equal, an increase in the rate of inflation ________ planned spending and ________ short-run equilibrium output.
A. decreases; decreases B. increases; decreases C. decreases; increases D. increases; increases
If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
What will be an ideal response?