What Is Meant by a Deadweight Loss

question 10

Multiple Choice

What is meant by a deadweight loss?

• A)It is the aggregate loss in total surplus in an inefficient market.
• B)It is the total loss in producer surplus due to output being at an inefficient level.
• C)It is the sum of the consumer and producer surpluses in an inefficient market.
• D)It is the loss in consumer surplus due to a price ceiling or floor in the market.

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Definitions:

Round Off

The process of adjusting numbers to the nearest value, often used to simplify calculations by eliminating digits after a certain decimal point.

Produce Market

A location or establishment where agricultural products, especially fruits and vegetables, are sold directly to consumers.

Tangerines

A type of citrus fruit smaller than oranges with a sweet, tangy flavor.

Monetary Products

Financial products and services that involve the management, investment, transfer, or lending of money.