Question

What is the term used to describe the decrease in total surplus that results from an inefficient level of production?

1) Deadweight loss
2) Elasticity
3) Monopoly
4) Subsidy

Answer 1

The term used to describe the decrease in total surplus that results from an inefficient level of production is deadweight loss.

It represents the inefficiency and waste in the economy caused by market distortions or inefficiencies.

Step-by-step explanation:

In economics, the term used to describe the decrease in total surplus that results from an inefficient level of production is deadweight loss.

Deadweight loss occurs when the economy produces at a quantity that is less than the efficient level, leading to a loss in social surplus.

It represents the inefficiency and waste in the economy caused by market distortions or inefficiencies.