The market equilibrium quantity:
A. is sometimes the socially optimal quantity
B. is the socially optimal quantity
C. maximizes total economic surplus
D. is not the socially optimal quantity
Answer: A
You might also like to view...
Which of the following reduced the demand stimulus effects of the Fed's low interest rate policy pursued during, and after, the financial crisis of 2008-2009?
a. Declining stock prices during 2010-2012. b. A reduction in the velocity of money. c. An increase in earnings derived from money market accounts, saving deposits, and similar saving instruments. d. A sharp increase in the rate of inflation during 2009-2012.
Related to the Economics in Practice on page 673: Satirist Frederic Bastiat's essay arguing for a quota on sunlight in order to protect domestic candle makers suggests that it is pointless to
A. participate in international trade. B. legislate based on economic theory. C. protect industries that cannot compete effectively. D. create barriers to trade in some markets but not others.
When the production of a good has a marginal external cost, which of the following occurs in an unregulated market?
i. Overproduction relative to the efficient level will occur. ii. The market price is less than the marginal social cost at the equilibrium quantity. iii. A deadweight loss occurs. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The _____ measures the degree of association between two independent variables in an a distribution
a. expectation b. standard deviation c. correlation coefficient d. variance