Which of the following statements is correct?

a. Total surplus is the sum of consumer and producer surplus.
b. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product.
c. Deadweight loss is a measure of market inefficiency.
d. All of these.

d

Economics

You might also like to view...

In the abstract, an omniscient government would have little power to move inefficient markets toward efficiency

a. True b. False

View
Economics

The lemons problem is due to

A) asymmetric information. B) moral hazard. C) hidden actions. D) symmetric information.

View
Economics