The reduction in consumer and producer surplus that results from underproduction is called
A) an internal cost.
B) a deadweight loss.
C) a quantity loss.
D) None of the above answers is correct.
B
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In the figure above, when the market is in equilibrium, what is the total surplus?
A) $1,000 B) $800 C) $200 D) $1,600
The principle of comparative advantage
A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
The nucleus of the Federal Reserve System is
a. its Board of Governors, which meets in Washington, D.C. b. the Committee of Wall Street, which convenes in New York c. the Discount Rate Committee d. the Thrift Institutions Advisory Council e. the Council of Economic Advisers, which meets regularly with the President
To measure how productive workers in the economy are, the best measure to use would be
a. real GDP. b. GDP divided by the population. c. GDP divided by the nation's capital stock. d. GDP divided by hours worked.