When a market is efficient, the
A) sum of consumer surplus and producer surplus is maximized.
B) deadweight gain is maximized.
C) quantity produced is maximized.
D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible.
E) total benefit equals the total cost.
A
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Based on the above table, if the current price level is 100 and the natural unemployment rate is 5 percent, what is the expected inflation rate?
A) 5 percent B) 2 percent C) 12 percent D) 8 percent E) 3 percent
When the level of unplanned inventory investment is equal to zero, the economy is
A) in disequilibrium. B) in a recession. C) in equilibrium. D) overheating
By convention, commercial paper issuers are divided into
A) individuals and corporations. B) private institutions and government institutions. C) large businesses and small businesses. D) financial companies and nonfinancial companies.
If an externality is present in a market, economic efficiency may be enhanced by
a. increased competition. b. weakening property rights. c. better informed market participants. d. government intervention.