-What Was the Major Cause of the Panic of 1819

question 8

Multiple Choice

-What was the major cause of the Panic of 1819?

• A) the collapse of the Second Bank of the United States
• B) the failure of Alexander Hamilton's economic policies
• C) land speculation in the West
• D) a fall in the price of cotton and other agricultural products

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Deadweight Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called efficiency loss.

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive, due to market prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.