Assume that price underestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing
A. the socially efficient amount of flu vaccine.
B. more than the socially efficient amount of flu vaccine
C. so that consumer surplus is zero.
D. less than the socially efficient amount of flu vaccine.
Answer: D
Economics
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In the figure above, if pizza production increases to 15,000 pizzas a day, the deadweight loss is
A) $45,000 per day. B) $12,500 per day. C) $22,500 per day. D) $90,000 per day. E) zero.
Economics
Suppose that Mr. Chopp withdraws $500 from his checking account. If the reserve requirement is 5 percent, what will be the maximum potential change in the money supply forthcoming from Mr. Chopp's transaction?
a. $10,000 b. $500 c. $0 d. -$500 e. -$10,000
Economics