Deadweight loss exists when a market is operated by a monopoly because the monopolist produces at an output level that is ____ the socially optimal level
Fill in the blank(s) with the appropriate word(s).
Ans: less than
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Which of the following creates job rationing?
A) The real wage rate is below the equilibrium level. B) The real wage rate is equal to the equilibrium level. C) An increase in unemployment benefits. D) The real wage rate is above the equilibrium level. E) Job search decreases.
Analysts have attempted to model the impact of monetary policy on net worth by emphasizing
A) the impact of lower interest rates on business spending on fixed investment. B) the impact of lower interest rates on household spending on housing and durable goods. C) the liquidity of balance sheet positions as a determinant of business and household spending. D) the greater variability of business spending compared to household spending.
The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources
a. are specialized. b. are scarce. c. are used inefficiently. d. are unproductive. e. have no opportunity cost.
What is true about government budget deficits and surpluses since 1940?
A) There have been more government budget surpluses than government budget deficits.
B) The number of government budget deficits is about the same as the number of government budget surpluses.
C) Balanced budgets have been more common than government budget deficits or government budget surpluses.
D) There have been more government budget deficits than government budget surpluses.