Explain why a production quota is inefficient
What will be an ideal response?
A production quota is inefficient because it decreases production. As a result the marginal social benefit of the last unit produced exceeds the marginal cost. Because the marginal benefit exceeds the marginal social cost, there is a deadweight loss.
Economics
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On the 45-degree line diagram, for points that lie above the 45-degree line
A) planned aggregate expenditure is less than GDP. B) planned aggregate expenditure is greater than GDP. C) planned aggregate expenditure is equal to GDP. D) planned aggregate expenditure is less than aggregate income.
Economics
According to neuroeconomists, our logical brain knows we should spend as much as possible when we have money
a. True b. False Indicate whether the statement is true or false
Economics