In evaluating the degree of economic efficiency in a market, we can state that the size of the deadweight loss in a market will be smaller
A) the greater the difference between marginal cost and average revenue.
B) the smaller the difference between marginal cost and price.
C) the greater the difference between marginal cost and price.
D) the smaller the difference between marginal cost and average total cost.
B
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A typical wheat farmer would never consider cost-plus-markup pricing because
A) he cannot clearly estimate his costs. B) the most profitable price he can ask for is the prevailing market price. C) the government won't allow it. D) he is a price searcher.
According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall. B) The production possibilities frontier will shift inward in the future. C) Fewer goods will be produced for consumption today. D) Future economic growth will decline.
What is the relationship between marginal utility and an individual demand curve?
If the government imposes a sales tax on a good with a relatively more inelastic demand, the _____
a. tax revenue collected by the government will be large b. tax revenue collected by the government will be small c. deadweight loss from the tax will be large d. tax burden on producers will be large