Deadweight loss refers to
A) losses in consumer surplus associated with excess government regulations.
B) situations where market prices fail to capture all of the costs and benefits of a policy.
C) net losses in total surplus.
D) losses due to the policies of labor unions.
C
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Which of the following statements is correct?
A) The higher the price level, the larger is the quantity of real GDP demanded. B) An increase in exports shifts the aggregate demand curve leftward. C) A tax increase shifts the aggregate demand curve leftward. D) An increase in people's expected future income shifts the aggregate demand curve leftward. E) An increase in potential GDP shifts the aggregate demand curve rightward.
The bowed shape of the per-worker production function is caused by
A) wealth effects that reduce labor supply. B) diminishing marginal productivity of capital. C) increasing marginal productivity of labor. D) increasing marginal productivity of capital.
Use the following information to answer the next several questions:Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively. Based on the information in Scenario 1, nominal GDP in 2016 in this economy was:
A. $830. B. $1,025. C. $1,090. D. $1,345.
If the first copy cost of a music video is $223,000 and the marginal cost is $0, how much is the average total cost if the firm produces 1 million copies?
A. 22.3 cents B. 0.223 cents C. 1,223,000 D. 223,000,000,000