On this graph, the use of a subsidy leads to a deadweight loss appearing primarily ______ the original equilibrium point.
a. above
b. below
c. to the right of
d. to the left of
c. to the right of
You might also like to view...
If the government takes over the distribution of some scarce good in a time of a natural disaster and provides the good at no charge to users, what must also be done?
A) The government must produce the good itself. B) Some rationing mechanism must be set up to determine who gets the good. C) Everyone hurt in the natural disaster must get one of the goods. D) nothing E) Because we live in a democracy, the government must use majority rule as the rationing mechanism.
Policies based on normative economic ideas tend to increase economic efficiency and improve equity
Indicate whether the statement is true or false
Which explanation for persistent unemployment used by the original Keynesian model is no longer needed in the new Keynesian model?
A) shifting IS curve B) a fixed nominal wage C) aggregate supply curve is a function of the nominal wage D) rigid wages and prices
Budget deficits cause interest rates to be high
a. True b. False