When is a deadweight loss the greatest?
a. in a highly efficient market
b. in a market with no tax
c. far away from equilibrium
d. at equilibrium
Answer: v
Economics
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In addition to insuring accounts, the FDIC today has the additional power of
A) establishing the discount rate. B) establishing FOMC goals. C) establishing higher capital requirements for banks. D) setting reserve requirements.
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As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?
i) The government's demand for loanable funds increased the real interest rate. ii) Investment expenditures were crowded out. iii) The supply of loanable funds curve shifted leftward. A) ii and iii B) i only C) ii only D) i and ii E) i, ii and iii
Economics