Deadweight Loss is defined as
A. the loss to society that results from incomes being too high or too low.
B. the loss to society that results from items costing more than some can afford.
C. the loss to society that results from production being too high or too low.
D. none of these
Answer: C
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Which of the following is true?
a. Healthcare in Canada and most of the European countries is a socialized industry. b. Socialization of the healthcare industry eliminates the problem of scarcity in the healthcare industry. c. The high-income countries of Europe are able to provide as much healthcare, free of charge, as their citizens want. d. All of the above are true.
If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 rises, and the monetary base remains the same. b. M1, M2, and the monetary base rise. c. M1, M2, and the monetary base fall. d. M1, M2, and the monetary base remain the same. e. M1 rises, M2 falls, and the monetary base remains the same.
An increase in the price of MP3 players will result in
A) a smaller quantity of MP3 players supplied. B) a larger quantity of MP3 players supplied. C) a decrease in the demand for MP3 players. D) an increase in the supply of MP3 players.
The Federal Reserve System of the U.S. is the country's
A. financial adviser. B. central bank. C. comptroller or accountant. D. deposit insurance provider.