Which of the following is correct（）
A. Consumer surplus refers to a situation in which there are more buyers than sellers in a market
B. Producer surplus refers to a situation in which there are more sellers than buyers in a market
C. Total surplus is measured as the area below the demand curve and above the supply curve, up to the equilibrium quantity
D. All the answers are correct
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An externality is an example of（）
A. a corrective tax
B. a tradable pollution permit
C. a market failure
D. an equilibrium
Absolute advantage is found by comparing different producers’（）
A. opportunity costs
B. payments to land, labor, and capital
C. input requirements per unit of output
D. locational and logistical circumstances
The best remedy for market failure is often（）
A. a market-based solution
B. shutdown of the market
C. no government intervention
D. externalizing the externalities
Taxes cause deadweight losses because they（）
A. lead to losses in surplus for consumers and for producers that, when taken together, exceed tax revenue collected by the government
B. distort incentives to both buyers and sellers
C. prevent buyers and sellers from realizing some of the gains from trade
D. All of the answers are correct
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