Deadweight loss is a type of economic inefficiency when a good or service is not at its economic equilibrium (where supply equals demand). This loss may be experienced because of a tax or subsidy, or because of market power, such as a monopoly. Economists refer to deadweight loss when they want to show the negative effects of certain policy decisions that are less than optimal.
D. a firm that has some control over the price of the product it sells
Answer:
d. fixed costs
Explanation:
The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before
Therefore according to the given situation, since the fixed does not vary with the amount of firm output
Hence, option d is correct
Answer:
The answer is C.
Explanation:
Macroeconomics is the study of the economy as a whole, unlike microeconomics which is the study of the individual firms/markets.
Macroeconomics focuses on the standard of living, unemployment rate, inflation rate etc. and how this affects the whole economy.
Option A is wrong because it is the microeconomics and not macroeconomics that studies the market and the firm.
Option B and D are wrong because these are for microeconomics
Answer:
The correct answer is option a and c.
Explanation:
The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.
At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.
The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.
