An efficiency loss (or deadweight loss):
A. is measured as the combined loss of consumer surplus and producer surplus.
B. results from producing a unit of output for which the maximum willingness to pay exceeds
the minimum acceptable price.
C. can result from underproduction, but not from overproduction.
D. can result from overproduction, but not from underproduction.
Answer: A
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Refer to Table 16-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) decrease government purchases. B) decrease income taxes. C) increase the level of interest rates. D) decrease the money supply.
Compared to other industrial nations, the unionization rate of the U.S. labor force is relatively _______.
Fill in the blank(s) with the appropriate word(s).
What can objectively be determined by looking at the current federal tax rates?
a. They are fair. b. They are unfair. c. They are regressive. d. They are progressive.
Which is a correct statement?
A. Demand-pull inflation will continue so long as there is excess total spending in the economy. B. It is relatively easy to distinguish between cost-push and demand-pull inflation even if you don't know the source of the inflation. C. A supply shock will cause a variation of demand-pull inflation that can lead to hyperinflation. D. Cost-push inflation will continue because increased per-unit cost will lead to a reduced supply.