In order for an economy to increase its production possibilities, the economy must

The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the

A) allocation of resources is efficient. B) market equilibrium produces 800 tons more than the efficient amount. C) market equilibrium produces 1,600 tons more than the efficient amount. D) market equilibrium produces 800 tons less than the efficient amount.

If a tax imposed in a market generates deadweight in that market, then the tax:

A. will generate very little tax revenue. B. could still increase economic surplus, depending on how the tax revenue is spent. C. will necessarily lower economic surplus. D. will never be approved by voters.