Deadweight Loss

question 70

Multiple Choice

Deadweight loss:

• A) creates efficiency in markets when producers and consumers both agree to it.
• B) is the difference between the total surplus occurring in a market and the maximum total surplus achievable.
• C) is the loss in producer surplus from a price increase.
• D) is the difference between the efficient quantity and the market quantity.

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Definitions:

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Interstate Commerce

Interstate Commerce refers to the buying, selling, or moving of goods, services, or money across state borders, regulated by the federal government.

Gun-Free School Zone Act

Federal legislation in the United States that prohibits the unauthorized possession of firearms in designated school zones.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.