In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce.
B) $2,000.
C) $5,000.
D) $10,000.
C
Economics
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The supply curve of books (which are produced using paper made from trees) will shift to the left in response to
a. a decline in college tuition. b. an increase in home building. c. an increase in the supply of lumberjacks. d. an end to government regulations that limit timber harvesting in national forests.
Economics
If average labor productivity decreases while population and the number of employed workers remain constant, then total output:
A. increases. B. decreases. C. may increase or decrease. D. remains constant.
Economics