Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. Which of the following is true?
A) Both 10,000 and 30,000 are economically inefficient rates of output.
B) If the price of iced tea is $3, consumers will purchase more than the economically efficient output.
C) If the price of iced tea is $3, the output will be economically efficient but there will be a deadweight loss.
D) If the price of iced tea is $3, producers will sell 30,000 units of iced tea but this output will be economically inefficient.
A
You might also like to view...
The overall level of well-being enjoyed by an individual is known as ________.
A. the real GDP B. the growth rate C. the national income D. the standard of living
If business taxes rise in a large open economy, it causes the current account to ________ and saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
The promise that was to hold the Bretton Woods system together was the agreement that
A) no industrial country would allow high rates of inflation. B) foreign central banks would be able to convert U.S. dollars into gold at a fixed price. C) no country would raise tariffs on the products of other countries. D) all countries would be willing to redeem their paper currencies for gold.
The United States experienced the lowest rate of productivity growth during the
A. 1950's. B. 1960's. C. 1970's and 1980's. D. 1990's and 2000's.