The term "deadweight loss" or "excess burden" is used to describe the
a. expenditures on exercise and weight-reducing programs by individuals who are overweight.
b. loss from the elimination of mutually beneficial exchanges that results from the imposition of a tax in a market.
c. difference between the value consumers place on a good and the price they have to pay for it.
d. reduction in consumer welfare that occurs when the firms in a market make a profit.
B
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The disastrous famine in North Korea was the result, in great part, of the government's efforts to develop
a. new trade bloc b. stronger military c. market economy d. large middle class
Which of the following can a firm do in the long run but not in the short run?
A) decrease the size of its physical plant B) reduce its rate of output by laying off workers C) increase its use of raw materials D) increase its variable costs