Total surplus can be increased if:
A. deadweight loss is increased.
B. new technology is banned.
C. new markets are created.
D. All of these can increase total surplus.
Answer: C
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Real GDP measures the
A) total profits earned by all businesses valued using prices from a single year. B) changes in the prices of output measured in dollars. C) general upward drift in prices. D) value of total production linked to prices of a single year.
The Grangers are noted for
a. encouraging the federal government to re-issue "greenbacks.". b. establishing cooperatives that sold farm and consumer goods to their members. c. refusing to sell grain to foreign countries. d. forming a cartel that set upper limits on members' output of basic farm products. e. All of the above.
Because GDP does not account for improvements in the quality of goods, the GDP calculation:
a. tends to overstate the true value of output in the United States. b. tends to understate the true value of output in the United States. c. provides an accurate value of output in the United States. d. provides the best measure of output in the United States. e. measures the value correctly because price changes always capture the value of quality changes.
In a perfectly competitive market
A. if a firm raises its price, it will lose some, but not all, of its customers. B. when a firm sells another unit of output, the addition to total revenue is equal to market price. C. a firm faces a perfectly elastic demand because there is unrestricted entry and exit. D. all of the above E. none of the above