The Decrease in Consumer Surplus and Producer Surplus That Results

question 84

Multiple Choice

The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the

• A) external benefit.
• B) big tradeoff.
• C) external cost.
• D) deadweight loss.

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Definitions:

Ethical Responsibility

The duty to act in a morally sound way, considering the consequences of one's actions on others.