The loss in social surplus that occurs when the economy produces at an inefficient quantity is called
a. efficiency.
b. consumer surplus.
c. social surplus.
d. deadweight loss.
d. deadweight loss.
You might also like to view...
The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:
A. the less an additional unit of capital adds to production. B. less is produced. C. less production is wasted. D. the more an additional unit of capital adds to production.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
The demand curve faced by a perfectly competitive firm is vertical
a. True b. False Indicate whether the statement is true or false
If the rate of interest increases, firms will most likely respond by
a. increasing investment. b. decreasing investment. c. not changing investment. d. increasing capital stock.