Deadweight Loss Is

question 245

Multiple Choice

Deadweight loss is:

• A) necessary to ensure that resources are channeled to their highest-valued use.
• B) the loss to the economy from firms going out of business due to competition.
• C) usually offset by deadweight gains.
• D) the total of lost consumer and producer surplus when not all mutually profitable gains from trade are exploited.

---

Definitions:

Difference

The result of subtracting one quantity from another.

Inferential Statistics

A field within statistics that employs a random subset of data from a larger group to make deductions and provide descriptions about that larger group.

Personal Computers

Electronic devices used by individuals for a variety of tasks including processing, storing, and accessing data, typically consisting of a CPU, monitor, keyboard, and mouse.

Statistical Analyses

The collection of quantitative techniques used to analyze data, draw conclusions, and make predictions.