If a market produces a level of output below the competitive equilibrium, then
A) social welfare is not maximized.
B) consumer surplus might still be maximized.
C) the actual price will be below the equilibrium price.
D) social welfare might still be enhanced if a price ceiling keeps price below the competitive price.
A
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The figure above shows the market for coffee. If the efficient quantity of coffee is produced, the producer surplus is
A) $10 million. B) $20 million. C) $60 million. D) zero.
The effects of the negative supply shocks of 1973, 1979 and 2007 were different due to the ________
A) role played by rational expectations in the 1979 event B) different sources of the supply shocks C) credibility of the monetary authorities D) different individuals who led the Federal Reserve System
In the aggregate expenditures model, equilibrium occurs if:
a. aggregate expenditures (AE) are greater than GDP. b. aggregate expenditures (AE) are less than GDP. c. there is no unplanned inventory depletion or accumulation. d. consumption equals investment.
The costs of unemployment is (are)
a. foregone output and psychological effects b. foregone output and physical effects c. psychological and physical effects d. foregone output, psychological effects and physical effects e. foregone output