Deadweight loss occurs when
A) consumer surplus is greater than producer surplus.
B) surplus losses to one group due to intervention are not offset by surplus gains to another.
C) consumer surplus is reduced.
D) consumer surplus is negative.
B) surplus losses to one group due to intervention are not offset by surplus gains to another.
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Refer to the figure above. Which of the following combinations is attainable but inefficient?
A) A B) B C) C D) D
In a committee, any outcome preferred by any member can win
a. True b. False
Did the large U.S. budget deficits in the 1980s “crowd out” investment as some economists had predicted?
A. Yes, investment dropped as predicted. B. Yes, although investment did not fall nearly as much as some had feared. C. No, investment was not crowded out, but net exports dropped. D. No, no crowding out at all occurred.
Each of the following factors contribute to the slope of the dynamic aggregate demand curve, except the:
A. extent to which monetary policymakers react to a change in current inflation. B. current level of technology. C. size of the response of aggregate expenditures to changes in the interest rate. D. strength of the effect of inflation on real balances.x