Deadweight Loss

question 115

Multiple Choice

Deadweight loss:

• A) occurs in markets that are efficient.
• B) occurs when markets are in equilibrium.
• C) is the loss in surplus from a market not in equilibrium.
• D) is additional surplus from an additional market transaction.

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Definitions:

Caveat Emptor

Latin for "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, prescribing the rights and duties of buyers and sellers.

Competition Bureau

A governmental agency responsible for enforcing laws to ensure fair competition, preventing monopolies, and promoting consumer interests.

Law Enforcement

The activity of ensuring compliance with the laws of a jurisdiction, typically conducted by police and other agencies.