A market that is operating efficiently maximizes total surplus. maximizes consumer surplus. maximizes profit. maximizes producer surplus. Deadweight loss occurs because some consumers are willing to pay more than some producers are willing to accept, but they do not exchange. the government has decided to prioritize efficiency over equality. consumer surplus is higher than producer surplus. producer surplus is higher than consumer surplus. Under autarky, producing goods at a price below the market equilibrium price is efficient because consumer surplus is maximized. inefficient because there are consumers willing to pay more than the cost of producing the good. efficient because total surplus is maximized. inefficient because producer surplus is smaller than consumer surplus.
LARGE QUESTION
In the simplest version of the circular-flow model , (governments, other countries ,households ,firms) demand factors of production and (governments ,other countries, households ,firms) supply factors of production.
A market that is operating efficiently
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maximizes total surplus. |
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maximizes |
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maximizes profit. |
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maximizes |
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some consumers are willing to pay more than some producers are willing to accept, but they do not exchange. |
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the government has decided to prioritize efficiency over equality. |
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consumer surplus is higher than producer surplus. |
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producer surplus is higher than consumer surplus. |
Under autarky, producing goods at a
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efficient because consumer surplus is maximized. |
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inefficient because there are consumers willing to pay more than the cost of producing the good. |
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efficient because total surplus is maximized. |
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inefficient because producer surplus is smaller than consumer surplus. |
If the government sets a minimum price and we do NOT observe a change in the market outcome, then we can conclude that the price was a
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binding |
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non-binding |
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binding price floor. |
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non-binding price ceiling. |
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