What term applies to the net loss of total surplus that results from an action that alters a market equilibrium?
a. welfare gain
b. net profit
c. deadweight loss
d. price ceiling
c. deadweight loss
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If the cost of labor decreases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate outward around the point where only capital is employed in production. D) shift inward in parallel fashion.
Marginal decision-making is best demonstrated by: a. choosing to spend one more hour studying economics because the improvement in scores on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made of animal skin or fur
c. acquiring the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
Gross domestic product is a dollar measure of
A. total gross investment in an economy. B. total industrial sales in a particular time period. C. the total physical product of the economy. D. the value of all final goods and services produced in one time period.
The consumer price index for the current year measures the cost of a standard basket in the ________ year relative to the cost of the same basket in the ________ year.
A. base; current B. current; current C. base; index D. current; base