Deadweight loss and market failure are created when a market produces
A) either more or less than the efficient quantity.
B) more than the efficient quantity but not when less than the efficient quantity is produced.
C) less than the efficient quantity but not when more than the efficient quantity is produced.
D) the efficient quantity.
E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.
A
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The reason why self-correction works to close a recessionary gap is because: a. a labor shortage causes wages to increase. b. a labor surplus causes wages to increase. c. a labor shortage causes wages to fall
d. a labor surplus causes wages to fall. e. a labor surplus causes price to fall.
Organizers of an outdoor concert in a park surrounded by residential neighborhoods are likely to consider the noise and traffic cost to residential neighborhoods when they assess the financial viability of the concert venture
a. True b. False Indicate whether the statement is true or false
Refer to the figure below. At the market equilibrium quantity, the social marginal cost of the last ton of paper produced is ________ the marginal benefit of the last ton of paper produced.
A. equal to B. less than C. greater than D. less than or equal to
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.