When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market.
B) the market is a monopoly.
C) there underproduction in the market.
D) the entire society experiences a loss.
D
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Answer the next question based on the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityTotal OutputTotal Cost$50$3522$4545303355402544703520559030156611525107714520588180If columns 1 and 3 are this firm's demand schedule, then economic profit will be
A. $70. B. $90. C. $80. D. $60.
Any policy that seeks to influence the level of aggregate demand is called
A) productivity policy. B) stabilization policy. C) aggregate policy. D) employment policy.
Plato and Aristotle both believed that an uneven distribution of income
a. is desirable since it encourages people to work b. creates natural class distinctions c. results in higher rates of economic growth d. leads to political discontent e. is acceptable as long as no one ends up in poverty
Which of the following statements is true regarding expansionary fiscal policy?
A) It leads to an increase in the supply of bonds by the Treasury. B) It leads to a fall in interest rates. C) It leads to an increase in net exports. D) It tends to reduce to size of government.