Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss

question 251

Multiple Choice

Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
-As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then:

• A) consumer surplus increases.
• B) producer surplus increases.
• C) deadweight loss is eliminated.
• D) all of these are true.

---

Definitions:

Budgeted Expenditures

Projected spending for a period, often categorized by expenses and investments, as part of a budget.

Budgeted Contributions

Projected or planned donations to be made or received by an organization within a specific time frame.

Direct Labor

The wages and other costs for labor that is directly involved in the manufacturing or production of goods and services.

Production Material Needs

The quantity and type of materials required to meet production goals.