The term "deadweight loss" or "excess burden" is used to describe the
a. expenditures on exercise and weight-reducing programs by individuals who are overweight.
b. loss from the elimination of mutually beneficial exchanges that results from the imposition of a tax in a market.
c. difference between the value consumers place on a good and the price they have to pay for it.
d. reduction in consumer welfare that occurs when the firms in a market make a profit.
B
You might also like to view...
Which of the following statements regarding a firm's long-run average total cost (LRATC) curve and its short-run average total cost (SRATC) curve is true?
A) The LRATC shows the lowest cost at which a firm is able to produce a given level of output when no inputs are fixed. B) The contribution of average fixed cost to LRATC is greater than its contribution to SRATC. C) The shape of the LRATC is affected by the law of diminishing returns. D) The SRATC, but not the LRATC, can be used by a firm's managers for planning.
Total revenue minus both explicit and implicit costs defines a firm's:
A. profit. B. net worth. C. gross earnings. D. marginal earnings.
Which of the following is an example of statistical discrimination?
A. An employer hires only white workers even though there are otherwise identical African- American workers available at lower pay. B. Women students in college business schools are overrepresented in human resource management courses and underrepresented in finance courses. C. A young woman who plans to work for only five to seven years after graduating college decides that getting an advanced degree "just won't pay off." D. A firm hires a man rather than a woman for a specific job because, on average, women have higher rates of absenteeism than do men.V
The basic classical model can account for the procyclical behavior of money if there
A. is reverse causation from future output to money. B. are rational expectations among the public. C. are propagation mechanisms in the economy. D. are real business cycles caused by productivity shocks.