A deadweight loss occurs whenever
A) the total benefit of a good does not equal its total cost.
B) the marginal social benefit of a good does not equal its marginal social cost.
C) there is perfect price discrimination.
D) there is no consumer surplus.
B
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In addition to the chairman of the Board of Governors, the FOMC consists of ________
A) six rotating members of the Board of Governors and five presidents of Federal Reserve banks B) six other members of the Board of Governors, four rotating bank presidents and the president of the New York Federal Reserve C) six other members of the Board of Governors and five presidents of Federal Reserve banks; all twelve rotating members D) twelve Federal Reserve Bank presidents E) none of the above
DeBeers is a natural monopoly in the world's diamond trade
a. True b. False
If the economy is self-regulating and in a recessionary gap, what happens?
A) Wages rise, the SRAS curve shifts leftward, and both Real GDP and the price level rise. B) Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls. C) Wages fall, the SRAS curve shifts rightward, and both the price level and Real GDP fall. D) Wages fall, the SRAS curve shifts rightward, the price level falls, and Real GDP rises. E) none of the above
Which of the following goods is the most liquid?
A. Antique sword from WWI B. House C. Saving deposit D. Painting by Monet