The deadweight loss associated with a policy change is measured as
a. the maximum value of consumer surplus
b. the sum of consumer surplus and producer surplus associated with the new policy
c. the excess of producer surplus over consumer surplus
d. the sum of ? consumer surplus plus ? producer surplus associated with the new policy
d. the sum of ? consumer surplus plus ? producer surplus associated with the new policy
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An economy that does not have interactions in trade or finance with other economies is referred to as
A) a closed economy. B) an open economy. C) a net foreign investment economy. D) a trade-balanced economy.
Perfectly competitive markets are efficient because
A) they always reach equilibrium. B) firms in the market are price takers. C) the cost to society for producing the goods is exactly equal to the value that society places on the good. D) the long run equilibrium assures that the prices of resources will not increase.
The labor productivity speed-up in the United States could be explained by a delayed
a. educational benefit. b. technology benefit. c. military spending benefit. d. baby boom benefit.
The federal funds rate is
A. The required reserve ratio that the federal reserve requires banks to maintain B. The interest rate that banks charge for loans to its important commercial borrowers C. The interest rate that banks charge each other for overnight loans