Deadweight Loss and Market Failure Is Created When a Market

question 40

Multiple Choice

Deadweight loss and market failure is created when a market produces

• A) either more or less than the efficient quantity.
• B) more than the efficient quantity but not when less than the efficient quantity is produced.
• C) less than the efficient quantity but not when more than the efficient quantity is produced.
• D) the efficient quantity.
• E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.

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Definitions:

Enthymeme

A syllogism or form of reasoning in which one of the premises is implicit or assumed rather than stated.

Missing Premise

a logical gap in an argument where an unstated or implied premise is necessary for the argument to hold.

Syllogism Validity

A measure of a syllogism's correctness in deducing the conclusion from two premises, based on the structure of the argument.

Syllogism Validity

The logic of an argument's structure determining its correctness or faultiness based on premises leading to a conclusion.