Refer to the figure below. Private incentives in this market generate deadweight loss equal to ________.
A. ½ × UW × LM
B. ½ × VW × KM
C. ½ × UV × LN
D. ½ × VW × LN
Answer: B
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Which of the following might be considered an automatic fiscal stabilizer?
A) government spending for the war effort B) 401(k) retirement program C) government budgeting for education D) unemployment compensation
In the 1980s, the U.S. current account deficit was financed by:
a. large outflows of domestic capital to other countries. b. large inflows of capital from private foreign investment in the United States. c. loans made by U.S. residents to the government. d. large inflows of foreign government capital. e. the Tax Reform Act of 1986, which increased income taxes for the wealthy.
Which antitrust act provided that parties could sue for and, if successful, collect triple damages from monopolistic firms?
A. Wheeler-Lea Act B. Sherman Act C. Clayton Act D. Celler-Kefauver Act
Under perfect competition, firms produce the ________ level of output because price equals marginal cost.
A. most costly B. greatest C. equitable D. efficient