Surplus value that is lost because something is keeping the market from functioning as well as it can is called
A) a tax.
B) a subsidy.
C) rent seeking.
D) deadweight loss.
D
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Answer the following statement(s) true (T) or false (F)
1. An economic model is robust if it provides results that are testable and verifiable. 2. An easy, but not very insightful, possible explanation for apparently irrational behavior is that it is rational for a people with a taste for the behavior. 3. Most economic explanations can be reduced to the idea that human behavior is primarily a matter of taste. 4. Since economists assume that people act in their own self-interest, economic analysis does not apply to situations where people behave altruistically. 5. A model that is said to be robust is one that has many details and closely mimics reality.
Extremely large budget deficits may lead to
a. low inflation. b. low employment. c. high unemployment. d. high inflation.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20Na195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, the law of increasing opportunity costs applies to
A. B-1 bombers. B. Stealth bombers but not to B-1 bombers. C. Both B-1 bombers and Stealth bombers. D. Neither bomber.
The data presented in the text shows that in the period from 1947-2013, real GDP in the United States has:
A. increased substantially. B. decreased in every year since 1947. C. decreased only in recent years. D. generally remained the same.