What is deadweight loss? When is deadweight loss equal to zero?
What will be an ideal response?
Deadweight loss is the reduction in economic surplus resulting from a market not being in competitive equilibrium. Deadweight loss is equal to zero when the sum of consumer surplus and producer surplus is maximized, which occurs when the market is in competitive equilibrium.
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Because of the free-rider problem, ________
A) there is an efficient allocation of resources for common resources B) private provision leads to the production of more than the efficient quantity of a public good C) private provision leads to the production of less than the efficient quantity of a public good D) the public uses too little of a common resource
The top 20 PACs, Political Action Committees, spent how much in 2010?
a. 100 million b. $200 million c. $300 million d. $400 million