Why is there a deadweight loss associated with subsidy payments?
A) There is no deadweight loss from a subsidy.
B) Quantity supplied is less than the equilibrium amount, so consumers and producers lose surplus value on those units that are no longer produced.
C) Quantity supplied exceeds the equilibrium amount, and consumer willingness to pay for these additional units is smaller than the marginal cost of producing them.
D) The subsidy payment does not distort quantities in the market, but the government cost exceeds consumer willingness to pay for the quantity demanded.
C
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Transfer payments are excluded from GDP
Indicate whether the statement is true or false
A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit
A) is the benefit the owner receives from staying open from 8 a.m. to 5 pm. B) depends on the revenues the owner makes during the day. C) must be greater than or equal to the owner's marginal cost if the owner decides to stay open. D) is the benefit the owner receives from staying open from 8 a.m. to 6 pm.
A primary emphasis of the Keynesian school is the economy has a tendency to:
A. always create a full-employment level of output. B. always create inflationary pressure at all levels of output. C. eliminate unemployment by lowering wage rates to create an equilibrium in the labor market. D. be in equilibrium at less than full employment.
Referring to Table 4.1, Box I should be filled with 
A. $150. B. $200. C. $115. D. $0.