A new law applied to a competitive market that requires laid off workers be paid a large severance payment will
A) not generate a deadweight loss.
B) increase total welfare.
C) increase consumer surplus in the market.
D) decrease consumer surplus in the market.
D
You might also like to view...
Gross Domestic Product is the market value of all ________ produced within a country in a given period of time
A) final goods B) intermediate goods C) final services D) intermediate services E) final goods and services
Suppose the government currently places tariffs and/or other import restrictions on good X. Will imposing a tariff and/or trade restriction on good Y necessarily reduce overall social welfare for the economy?
What will be an ideal response?
If the firm in the given graph were to produce Q2 and charge P2, then:
These are the cost and revenue curves associated with a firm.
A. economic profit would be negative.
B. deadweight loss would be positive.
C. producer surplus would be zero.
D. profits would be maximized.
Which statement concerning President Nixon's wage and price controls is not true?
a. They were designed to control inflation . b. As soon as they were lifted, their impact on the economy proved to be ineffective. c. They prohibited wage and price increases for 90 days. d. They were voluntary. e. They distorted free market signals.