Deadweight Loss Occurs When

question 7

Multiple Choice

Deadweight loss occurs when

• A)consumer surplus is greater than producer surplus.
• B)surplus losses to one group due to intervention are not offset by surplus gains to another.
• C)consumer surplus is reduced.
• D)consumer surplus is negative.

---

Definitions:

Profit-Sharing Programs

Incentive plans introduced by businesses that provide employees with a share of the company's profits beyond their standard pay.

Skill-Based Pay

A compensation system that bases an employee’s pay on the skills, knowledge, and abilities they demonstrate, rather than their job title or position.

Company Profits

The financial surplus generated from a company's operations after subtracting all expenses from its total revenue.

Job-Related Skills

Specific abilities and knowledge required to perform particular tasks or duties in a job.