In the above figure, if the quantity is equal to 1,500,000 units, the deadweight is equal to
A) area A + area B.
B) area C.
C) area B + area F.
D) area G + area H.
E) None of the above answers is correct because the deadweight loss is equal to zero.
E
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The time cost incurred by consumers who must find substitute products after a ban is placed on some good or service is an example of a(n)
a. capital cost d. operating expense b. fixed cost e. implicit cost c. explicit cost
If you buy an insurance policy with a low deductible and no co-payments, you would end up paying
a. A higher premium b. A lower premium c. The premium of a low risk individual d. Both B&C
Which of the following shifts aggregate demand to the right?
a. the Federal Reserve buys bonds. b. a decrease in net exports due to something other than a change in domestic prices. c. an increase in household saving. d. All of the above are correct.
The highest unemployment rate we experienced since the Great Depression was in
A. 1973. B. 1982. C. 1990. D. 2001.