Refer to Figure 9.2. At price 0E and quantity Q*, the deadweight loss is
A) 0ACQ*.
B) 0ECQ*.
C) 0FCQ*.
D) EFC.
E) none of the above
E
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If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) not buy the good. B) receive the maximum consumer surplus. C) receive no benefit from the good. D) receive no consumer surplus from that unit of the good. E) suffer a deadweight loss from buying the good.
Most private insurance is provided by
A. employers as a benefit to their employees. B. the federal government. C. HMOs. D. the Office of Health Insurance.
The derived demand and, consequently, the demand curve for labor are determined by
a. labor's wage. b. labor's marginal revenue. c. the marginal cost of the input labor. d. labor's marginal revenue product.
If the money rate of interest is 12 percent and the real rate of interest 7 percent, the inflationary premium is
a. 5 percent. b. 7 percent. c. 12 percent. d. 19 percent.