Refer to the figure below. The deadweight loss at the market equilibrium quantity is equal to the area ________.
A. ½ × EF × AC
B. ½ × FG × BD
C. ½ × GH × BD
D. ½ × FG × AC
Answer: D
You might also like to view...
Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow
Indicate whether the statement is true or false
The smallest productivity gains from colonial shipping were from:
a. shorter layover times in ports. b. lower insurance rates. c. the increased speed of the ships. d. fewer wars.
If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
a. shut down. b. increase output. c. decrease output. d. continue at its current output if P > AVC. e. continue at its current output if P > ATC.
A tax loophole is
A. an illegal method by which individuals or corporations avoid paying the taxes they legally owe. B. a provision in the tax code that allows individuals or corporations to reduce their tax burdens legally by meeting certain conditions. C. a tax surcharge on incomes within certain ranges. D. a provision in the tax code that allows individuals or corporations to shift the economic incidence of a particular tax on to someone else.