Deadweight Loss Occurs When

question 105

Multiple Choice

Deadweight loss occurs when:

• A) consumer surplus transforms into producer surplus.
• B) there is a shortage of a good or service.
• C) consumer and/or producer surplus decrease without the surplus going to anyone.
• D) the gains from trade are lowered due to shifts in the supply or demand curve.

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Definitions:

Socialist System of Economy

An economic system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.