When speculators buy gasoline during the low demand spring in order to sell it during the high demand summer, they cause an increase in dead weight loss in the spring that is more than made up for by an increase in social surplus in the summer.
Answer the following statement true (T) or false (F)
False
Rationale: The behavior increases social surplus both now and in the future.
You might also like to view...
If entry into an industry was very easy, the four firm concentration ratio would not be a very useful index of the competitiveness in that industry
a. True b. False Indicate whether the statement is true or false
Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. If Country B transfers one labor hour from the production of Good X to the production of Good Y, total world production of Good Y will ________ by ________ unit(s). ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. increase; 0.7 B. increase; 0.5 C. decrease; 1.5 D. decrease; one