Deadweight loss measures the loss
a. in a market to buyers and sellers that is not offset by an increase in government revenue.
b. in revenue to the government when buyers choose to buy less of the product because of the tax.
c. of equality in a market due to government intervention.
d. of total revenue to business firms due to the price wedge caused by the tax.
a
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Professor I.M. Dismal returns to campus in the fall to find that the bookstore is charging 10% more for the new economics textbooks he ordered this year compared to last year
On the basis of this information, and using the economic way of thinking, what can Professor Dismal clearly conclude? A) The economy has experienced a 10% inflation over the year. B) The economy has experienced a 10% deflation over the year. C) The economy has experienced a disinflation over the year. D) The economy has experienced a steady price level over the year. E) The bookstore is charging 10% more for the new textbooks he ordered this year compared to last year.
Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $39, average variable cost is $25, and average total cost is $45 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
In his 1951 book, Social Choice and Individual Values, Kenneth Arrow used the term "unanimity" to mean
a. A beats B only if everyone prefers A to B. b. if everyone prefers A to B, then A beats B. c. if A beats B and B beats C, then A must best C. d. everyone who is eligible to vote must vote; otherwise, the outcome is invalid.
If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling ________ and the money supply will increase by ________.
A. $9,000; $9,000 B. $9,000; $10,000 C. $1,000; $1,000 D. $1,000; $9,000