Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and
A) the difference between consumer surplus and producer surplus is maximized.
B) economic surplus is minimized.
C) consumer surplus plus producer surplus is maximized.
D) economic surplus plus consumer surplus equals producer surplus.
C
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In the above figure, starting at E1, if there is a supply shock that is temporary, the
A) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and then return to SRAS0. D) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0.
A major factor contributing to the growth in employee-based health insurance in the United States has been
a. greater than average economic growth leading to increased demand for labor. b. the tax free treatment of health insurance as an employee benefit. c. legislation requiring all firms to provide health insurance to all full-time workers. d. the long standing tradition in the United States of providing a generous package of benefits to all workers.