The total amount of consumer surplus and producer surplus is at its maximum when
A) consumers and producers are allowed to trade at the market clearing price.
B) the government imposes a price floor that is higher than the market clearing price.
C) the government imposes a price ceiling that is lower than the market clearing price.
D) free market exchanges do not exist.
A
Economics
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Suppose that Australia has fully employed all of its resources. This situation means that Australia
A) is experiencing zero unemployment. B) has a positive Lucas Wedge. C) has a negative Okun Ga D) is operating at its potential GDP
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Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, the resulting deadweight loss will be
A) $1.50. B) $200. C) $150. D) $300. E) $600.
Economics