When the quantity of a good bought and sold is below the market equilibrium quantity, the loss of total surplus that results is called:
A. deadweight loss.
B. producer surplus.
C. consumer surplus.
D. total surplus.
A. deadweight loss.
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The so-called "Four Tigers" do NOT include
A) Japan. B) Hong Kong. C) Taiwan. D) Singapore.
Economists tend to judge a model based upon
A) the reality of its assumptions. B) the accuracy of its predictions. C) its simplicity. D) its complexity.
Suppose that a powerplant is given a permit to pollute 10 tons of carbon into the atmosphere. As the powerplant operates, it can generate $200 of profit selling electricity per ton of carbon that it sends into the atmosphere. If the price of the carbon permit is $100 per ton, then:
A. the powerplant is better off shutting down and selling its permit. B. the powerplant is better off buying more permits and selling more electricity. C. the powerplant is better off selling electricity and using the permits to pollute 10 tons of carbon. D. the powerplant is better off shutting down and buying more permits.
Tariffs reallocate income from
A) consumers to producers. B) producers to consumers. C) government to producers. D) consumers to foreigners.