When there is overproduction in a market,
A. there is a deadweight loss.
B. market price is too low.
C. the total of consumer and producer surplus is maximized.
D. there is excess quantity demanded.
Answer: A
You might also like to view...
If an import quota is imposed on imports of shrimp into the United States, U.S. consumers ________ and the U.S. economy will ________
A) gain; lose B) gain; be unaffected C) gain; gain D) lose; lose E) lose; gain
When McDonald's opens a store in Dhaka, Bangladesh, it has a strong incentive to enforce product quality consistent with stores in the United States
a. True b. False Indicate whether the statement is true or false
Explain how banks create loans and how this process is impacted by the reserve requirement and excess reserves. Then, create a scenario that demonstrates how banks create money when they issue loans, being sure to include an initial deposit amount, a reserve requirement ratio, an excess reserve amount, and how much money can be created from a single transaction.
What will be an ideal response?
According to the invisible hand theorem, as stated in the text,
A. even non-competitive markets are able to achieve Pareto efficient outcomes. B. an equilibrium produced by competitive markets will exhaust all gains from exchange. C. non-market forces can prevent the markets from guiding consumers to the contract curve. D. government interaction is sometimes needed as an invisible hand to lead the economy toward efficiency.