A Deadweight Loss Is Created

question 342

Multiple Choice

A deadweight loss is created

• A) only if the last unit produced has a marginal social benefit greater than its marginal social cost.
• B) only if the last unit produced has a marginal social cost greater than its marginal social benefit.
• C) only if the last unit produced has a marginal social benefit equal to its marginal social cost.
• D) if for the last unit produced, marginal social cost is greater than its marginal social benefit or if its marginal social benefit is greater than its marginal social cost.

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Definitions:

Soviet Annexation

The forceful acquisition and incorporation of territory by the Soviet Union into its sovereign boundaries, typically against the will of the annexed territory's populace.

Josef Stalin

Soviet leader from the mid-1920s until his death in 1953, known for his dictatorship, the establishment of a state-controlled economy, and political purges.

Harry S. Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan to rebuild Europe’s economy after World War II, among other things.

George F. Kennan

An American diplomat and historian, best known for his role in defining the U.S. foreign policy approach of containment during the Cold War.