A deadweight loss is the loss to society of not producing the supply-and-demand determined level of output
Indicate whether the statement is true or false
True
You might also like to view...
A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause
A) net exports to decrease. B) real domestic interest rates to rise. C) real world interest rates to rise. D) desired national saving to fall.
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the cost of a gallon of propane to $5.50 next month, this is an example of ________.
A) a preannouncement B) a precommitment C) price leadership D) a meet-the-competition clause
Explain what will happen if firms in a monopolistically competitive industry are earning positive economic profits
What will be an ideal response?
Public teacher layoffs, in most states, would be
A. among the worst teachers. B. last in, first out. C. first in, first out. D. among the best teachers.