In economics, a deadweight loss (also known as excess burden or allocative inefficiency) is a loss of economic efficiency that can occur when equilibrium for a good or service is not Pareto optimal. In other words, either people who would have more marginal benefit than marginal cost are not...
deadweight lossAlso found in: Acronyms, Wikipedia. Deadweight Loss The loss of economic activity due to excessive taxation. For example, suppose a person on welfare is offered a job that pays more than he/she receives in welfare benefits. If taxes are too high, however, the person may ...
Related to dead weight:Dead weight loss dead weight ordead·weight(dĕd′wāt′) n. 1.The unrelieved weight of a heavy, motionless mass. 2.An oppressive burden or difficulty. 3.Abbr.DWThe fixed weight of a structure or piece of equipment, such as a bridge on its supports. Also called...
Plural and Possessive Names: A Guide Your vs. You're: How to Use Them Correctly Every Letter Is Silent, Sometimes: A-Z List of Examples More Commonly Mispronounced Words How to Use Em Dashes (—), En Dashes (–) , and Hyphens (-) ...
Deadweight loss definition. Learn how to calculate deadweight loss using the deadweight loss formula & deadweight loss graph. Practice deadweight...
deadweight loss Deadwood Deal flow Deal stock Deal Ticket Dealer dealer bank dealer loan dealer market Dealer Option Dealer options dealer paper dealer status Dealer's spread Dealing desk dear money death Death benefit Death Cross Death play
Related to loss: Deadweight loss, Lossaloss(lôs, lŏs) n. 1. The act or an instance of losing: nine losses during the football season. 2. a. One that is lost: wrote their flooded house off as a loss. b. The condition of being deprived or bereaved of something or someone: He...
Loss aversion损失规避:individuals give greater weight to loss than gains. Reference points基准点:basing decision from a particular reference point rather than overall and led to decision making by compartmenting the process. Indifference curves and ...
Deadweight loss of taxation measures the overall economic loss caused by a new tax on a product or service. It analyses the decrease in production and the decline in demand caused by the imposition of a tax. It is a lost opportunity cost as it represents something that could have been colle...
reducing economic efficiency by introducing deadweight losses. For example, a sales tax on a certain product increases the price, thereby reducing sales. These lost sales are considered a deadweight loss because they represent potential economic activity that was not realized because of the sales tax...