Deadweight loss rev: 05_10_2018 Multiple Choice
is measured as the combined loss of consumer surplus and producer surplus.
results from producing a unit of output for which the maximum willingness to pay exceeds the minimum acceptable price.
can result from underproduction, but not from overproduction.
can result from overproduction, but not from underproduction.

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

The distinction between a normal and an inferior good is

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)