Christmas is a time of seasonal cheer, family get-togethers, holiday parties, and-gift giving. Lots and lots--and lots--of gift giving. It's hard to imagine any Christmas without this time-honored custom. But let's stop to consider the gifts we receive--the rooster sweater from Grandma or the singing fish from Uncle Mike. How many of us get gifts we like? How many of us give gifts not knowing what recipients want? Did your cousin really look excited about that jumping alarm clock? Lively and informed, Scroogenomics illustrates how our consumer spending generates vast amounts of economic waste--to the shocking tune of eighty-five billion dollars each winter. Economist Joel Waldfogel provides solid explanations to show us why it's time to stop the madness and think twice before buying gifts for the holidays. When we buy for ourselves, every dollar we spend produces at least a dollar in satisfaction, because we shop carefully and purchase items that are worth more than they cost. Gift giving is different. We make less-informed choices, max out on credit to buy gifts worth less than the money spent, and leave recipients less than satisfied, creating what Waldfogel calls "deadweight loss." Waldfogel indicates that this waste isn't confined to Americans--most major economies share in this orgy of wealth destruction. While recognizing the difficulties of altering current trends, Waldfogel offers viable gift-giving alternatives. By reprioritizing our gift-giving habits, Scroogenomics proves that we can still maintain the economy without gouging our wallets, and reclaim the true spirit of the holiday season.
Deadweight loss occurs when products are purchased without much thought, resulting in a waster of money. The buyers are not satisfied because they bought the item in the moment despite it being worth less than what they paid for.
ReplyDeleteThe Economic Glossary defines deadweight loss as "a net loss in social welfare that results because the benefit generated by an action differs from the foregone oppurtunity cost."
For example, parents are more willing to pay inordinate amounts of money on their child's birthday. While they may not have a lot of money in the bank, they view their child's special day as having to be unforgettable. Because of this, parents often time purchase presents that their kids tire of after a couple of weeks. This "deadweight loss" causes the parent to regret buying many gifts that didnt hold their child's interest. While they believed their child's happiness to outweight the price of the presents, in reality their child is not all that thrilled.
Emily Nyren
Period 1
Deaddweight loss is when you over pay for somethng that is less desirable for whoever you are getting the gift for. This results in a waste of money. According to the New Yorker, deadweight loss is when someone pays more for an item than the person receiving the item is wiling to pay. " Deadweight loss is when you buy me a sweater for $80, but I would only pay $65.". Many times throughout their lives, children will receive clothing, such as nice, dress shirts. Parents and grandparents may spend hundreds of dollars onthese shirts, but as soon as the child sees the shirt, they will almost exclaim "you paid what for this shirt?! I would pay maybe $50 and I still wouldn't wear it more than once!"
ReplyDeleteDrew Koletsky period 3
Deadweight Loss is where someone will purchase a gift for someone with little information which results in usually paying a high amount for a gift that in turn has little worth for the person recieveing it. This ultimately results in a waste/loss of money.
ReplyDeleteInvestopedia defines Deadweight Loss as, "any deficiency due to an inefficient allocation of resources."
An example of Deadweight Loss: My wife once invited a bunch of her friends to my 30th birthday. They all bought me random mugs and shirts that id say were around $50-200. Thing is, I did not use or want any of them so I just let them sit and rot in my closet. Waste of money on their part since I couldn't even return them as gifts.
Deadweight loss is when someone purchases an item without caring for the price only to find out that the recipiant would neither spend the money for it or needed it at all. The buyer ends up feeling less satisfied.
ReplyDeleteThe Economic Glossary defines deadweight loss as a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
An example is when you are buying a wedding gift for someone you don't bother to look at the price because you know that it is a special occasion. So you go out and spend $80 for a blender thinking that is what they really need and want. They look excited when they get it but soon after the wedding you notice that they have no use for the blender so you end up returning the blender. So in the end the deadweight loss makes the buyer feel that they shouldn't have bought the blender because they didn't really want or need it.
Amanda Kalt
Period 4
Deadweight loss is when buyers buy gifts that are worth less than what they actually spent on them. Deadweight loss is a waste of money and dissatisfies both the buyer and the recipient.
ReplyDeleteConservapedia defines deadweight loss as an economic loss to the public without any offsetting gain. Specifically, a deadweight loss is the loss in efficiency that a society suffers as a result of firms setting their monopoly prices greater than marginal cost.
An example of deadweight loss is when my dad had his surprised 50th birthday and received a lot of shirts and cups that said “ 50 – Over the Hill” on them. At the time of purchase, his friends probably thought he would like these presents and that they would be funny and worth the money. But now, a few months after his birthday, he has still never worn any of those shirts or returned the cups. So, these presents were a waste of money, and both the buyer and my dad were dissatisfied.
Jennifer Lubell
Period 3
Deadweight loss is the consumption of overpriced products for less than desirable demand. Thus the buying of the product or good is causing a waste in money.
ReplyDeleteThe EconPort defines deadweight loss as “the loss of consumer and producer surplus that is caused by inefficiency in a market.”
An Example would be buying a Barbie doll for a teenage girl for her birthday in which she would not play or use the doll equivalent to the price paid. The cost for buying it does not meet the satisfaction of receiving and playing with the doll. Another example is getting more winter clothes at Christmas time to a kid who has plenty enough. This causes a waste in money due to the higher charges of the clothes and the amount of use the clothes would experience.
Ian Anderson
Period 4
Deadweight loss is when someone spends more money on a product for a person and the person ends up being dissatisfied.
ReplyDeleteAccording to EconModel deadweight loss is the inefficiency caused by, for example, a tax or monopoly pricing.
An example of deadweight loss can be buying a present for a person because a birthday is coming up. Being in such a rush to buy this present, a person would not wait for it to go on sale. This person would buy the product for a higher price than it is really worth. The the gift recipient might not care for the gift and it will stay in a storage closet for a very long time.
Tara Cooper
Period 5
Deadweight loss occurs when people spend money on a product that is actually worth less than the money spent. Therefore they are dissatisfied.
ReplyDeleteAccording to the Economic Glossary deadweight loss is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost. This is usually the combination of lost consumer surplus and lost producer surplus, and indicates of the inefficiency of a situation.
Deadweight loss is seen a lot during the holiday seasons. For example, you buy your mom a $100 brandname perfume but she only uses it twice a year. It was not worth all that money.
Claudia Paez
per.1
This comment has been removed by the author.
ReplyDeleteDeadweight Loss is defined as the uninformed buying of unsatisfactory items that result in the consumer's unhappiness with the choice made.
ReplyDeleteEconomic Glossary describes deadweight loss as "A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost".
An example of deadweight loss is when grandparents buy their grandchildren gifts. The thought is nice but usually the actual gift is not wanted by the grandchild. It is thrown to the back of the closet and forgotten which results in the child being unsatisfied and a loss of money spent on the gift.
Katelyn Kennedy
5th Period
Deadweight loss occurs when people spend more money on an object than it is actually worth.
ReplyDeleteInvestopedia describes deadweight loss as "any defficiency due to an inefficient allocation of resources."
This happens a lot around holidays when people are trying to be giving. For example, if my parents buy me a $50 shirt for my birthday that I secretly think is hidious. The shirt will sit in my closet and it will never get it's moneys worth.
Adam Clayman
Period 5
Deadweight loss happens when someone decides to spend lthe maximum price for something that is not worth that much.
ReplyDeleteInvestopedia describes deadweight loss as "any defficiency due to an inefficient allocation of resources."
An example of deadweight loss is when an aunt or uncle buy me a gift for Christmas. Since I don't see my aunt or uncle very much and they don't know what I'm interested in they go out and buy what all the "kids your age like." Usually this doesn't turn out well and I pretend to like teh gift and end up either regifting it or throwing it in my closet. My aunt or uncle spent money on something that I don't even want.
Sabina Flores
Pd. 6
Period 6
ReplyDeleteDeadweight loss is a type of wealth destruction which occurs in most major economies. It occurs when consumers pay a large price for a product which they have minimal use for; resulting in a loss of customer satisfaction and a waste of money.
The Economic Glossary describes it as, “A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.”
Deadweight loss can occur if, for example, you receive expensive gifts for your birthday like clothes, shoes, or accessories, and you don’t like some of them; so you never get any use out of them. Therefore the gifts were a waste of money.
Deadweight loss is money wasted on an object that brings no satisfaction to anyone. Deadweight loss is a lose-lose situation, sometimes between multiple people.
ReplyDeleteDictionary.com defines "deadweight loss" as: "The costs to society created by an inefficiency in the market."
When my grandmother buys me crazy halloween decorations and treats and what not, I am very thankful for the thought, but I have no need for any of the things she buys me. This is an example of deadweight loss.
Brett Sheldon
Period 3
Deadweight loss is mostly the result of ignorance. Deadweight loss occurs when people overvalue goods or services and buy without prior research or insight. It can also occur when companies produce or provide the wrong goods or services.
ReplyDeleteIn an economic definition from dictionary.com with investopedia commentary "The term "deadweight loss" can be applied to any deficiency due to an inefficient allocation of resources."
An example of deadweight loss is when a clothing company decides to produce a certain clothing style that is not popular or loses its popularity with consumers. This results in lost production and a misuse and inefficient allocation of resources.
-Taylor Thornsbury Period 3
Deadweight loss is when someone spends more money on a product for a person and the person ends up being dissatisfied.
ReplyDeleteThe Economic Glossary describes it as, “A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.”
An example of deadweight loss during the holiday season is when you buy someone an expensive gift and they barely use it. So it is therefore, wasted.
-MAX SHAPIRO PD: 3
Deadweight loss occurs when someone spends more money on an object than it is actually worth, leaving the recipient unsatisfied.
ReplyDeleteThe Economic Glossary defines deadweight loss as a "net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost."
Deadweight loss occurs a lot around the holidays. An example of deadweight loss is buying someone in South FL an expensive designer sweater. Because they live in South FL, they would not be able to wear the sweater very often. As a result, the designer sweater was a "waste" of money.
Kelly Ritenbaugh
Period 5
Michelle Moran
ReplyDeletePeriod 6
Deadweight loss is when there is a waste of something (money, time, resources) in the market because of a shortcoming of the market (tastes change, cultural requirements).
As defined by Dictionary.com: "the costs to society created by an inefficiency in the market."
An example of deadweight loss is going out to eat at an expensive restaurant that you've never been to before and not liking the food. You might as well go to a cheaper place that's tried and true, because you will get more satisfaction for your dollar there.
Deadweight loss is defined as "any deficiency due to an inefficient allocation of resources" by Investopedia.
ReplyDeleteAn example of deadweight loss is when you buy someone a $50.00 Redsox sweater to a Yankee fan. OBviously the Yankee fan will never wear it, maybe even throw it away. Right there, that's automatic loss of money. There was absolutely no satisfaction from the sweater, and the person did not get the $50.00 worth on the sweater.
This is the case with most presents, or even in investing when you put in thousands of dollars into a company, but you get back less than what you invested in the company.
Lucas D'Onofrio
Period 5
Deadweight loss is any deficiency due to misallocation of resources. Lost production due to an inaccurate forecast of labor is an example of dead weight loss.
ReplyDeleteShane Chernoff
Period 1
Deadweight loss: is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
ReplyDeleteUsually the value that the recipient sees in a product is less than the value that the buyer sees in the product.
If someone were to get an iPod shuffle for a friend who already has an iphone and an iPod classic, then a deadweight loss would occur. The person who is receiving the gift ees a lower value in a shuffle because they already have two iPods, but the person giving the gift sees a great value in the shuffle because they may like to use them when working out.
Chris Lee
Period. 4
Period 5
ReplyDeleteDeadweight loss, in layman's terms, is buying something for someone without considering the wants or tastes of the person.
For example, if a history major buys a replica of George Washington's teeth and gives it to his friend whos an art major, the present will reflect deadweight loss.
Another example would be giving someone who lives in Siberia a tanktop and basketball shorts as a present.
Both examples reflect the principles of deadweight loss, which "measures the inefficiency caused from a market distortion, such as a tax levied on an item or a minimum price law. The deadweight loss is measured by the sum total of both the consumer surplus and producer surplus caused by the policy." as defined by About.com: Economics
Deadweight Loss can be defined as when somebody buys a product or gift for somebody else for a certain amount and the person who is recieving the gift would not be willing to pay as much as the buyer did, therefore resulting in dissatisfaction.
ReplyDeleteAs defined by Dictionary.com: "the costs to society created by an inefficiency in the market."
An example of Deadweight Loss could be when my parents bought me a very expensive t-shirt that I absolutely hated. I never end up wearing the shit and my parents money was completely put to waste.
ANDREW COLMAN
Period 3
wearing the shirt **
ReplyDeleteAndrew Colman
Deadweight loss: The cost to society created by an inefficiency in the market.
ReplyDeleteAn example of this is buying someone a very expensive birthday present, only to have them not like it.
Deadweight loss is the costs to society created by an inefficiency in the market. It is applied to any deficiency due to an inefficient allocation of resources.
ReplyDeleteAn example of deadweight loss is if you buy a whole gift basket filled with chocolate and gummies, but the person you give it to does not eat candy because of Diabetes. The money spent on that basket was a waste because the person who received it will probably throw it away anyway.
Dead weigh cost occurs when one spends X amount of dollars on a product but receives less than X amount of satisaction.
ReplyDeleteWikipedia defines dead-weight cost as a situation where "people who would have more marginal cost than marginal benefit buy the product."
So these two definitions clearly point to a situation where one will regret their purchase. We could apply this concept to presidential election. Many people who voted for President Bush later regreted their decision, and they had to suffer through the affects of dead-weight cost.
Deadweight loss is when more money is spent on something than it is actually valued at. This can be because something is dissatisfying or a change in taste which results in money being wasted.
ReplyDeleteThis is how about.com defines deadweight loss: "Deadweight loss measures the inefficiency caused from a market distortion"
An example of deadweight loss would be when someone gave me a DVD which I already owned. Since the money that paid for the DVD was wasted, it would be deadweight loss.
Stephen Cohen
Pd. 3
"Deadweight Loss is defined as the cost to society that is caused by an inefficiency in markets. Deadweight loss is can be applied to can be explianed by any loss due to inefficient use of resources." This information was gathered from investopedia.com
ReplyDeleteThere are many good examples of deadweght loss that occur around the holidays. There are many presents being bought and given, but they are not always wanted. If somebody gives a Giants shirt to a Steelers fan, the shirt will never be used by that person and would be considered a deadweight loss.
Deadweight loss occurs when a person spends more money on an object than the object is truly worth, in terms of the recipients satisfaction.
ReplyDeleteDictionary.com defines deadweight loss as being "The costs to society created by an inefficiency in the market."
An example of deadweight loss is when christmas roles around my grandma buys me a Nintendo Ds and the newest Pokemon game. My Grandma has failed to realize that I no longer play Pokemon and that she has spent $200 on an object that will never be unboxed.
the term deadweight loss is used when people spend more money on a good than it is actually worth
ReplyDelete"Deadweight loss measures the inefficiency caused from a market distortion, such as a tax levied on an item or a minimum price law. The deadweight loss is measured by the sum total of both the consumer surplus and producer surplus caused by the policy." http://economics.about.com/od/d/g/deadweight_loss.htm
an example of deadweight loss would be if i bought high heals for my little sister for her to wear. they were really expensive ($189) and she ends up not being allowed to wear them because my father wont let her. so they end up sitting in her closet and she eventually grows out of them.
sylvie ouknine
period 5
The Economic Glossary defines deadweight loss as a "net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost."
ReplyDeleteSo Deadweight loss is something that you don't get an equal return as what you put in.
For example if a man buys a hideous dress for his wife. Since it's just going to sit in her closet it's just a deadweight loss because the dress is not going to be worn.
Matthew Hetelson
P.5
"Dead Weight Loss" is any deficiency due to an inefficient distribution of resources. An example of a "Dead Weight Loss" is a loss of production due to an inaccurate prediction of labor.
ReplyDeleteDeadweight loss is the amount of money wasted on a product that provides the recipient with no satisfaction.
ReplyDeleteDeadweight loss: "The costs to society created by an inefficiency in the market."
Example: I bought my friend an expensive shirt for her birthday, she claimed to like it, but truly she did not like it. The shirt now sits in the back of her closet and was not worth the money spent.
Serena Schuyler
Pd. 5
Deadweight loss occurs when a buyer over spends on a present that the receiver will not value. The satisfaction is not fulfilled on both side and the consumer looses more than they paid for.
ReplyDeleteThe Economic Glossary defines deadweight loss as a "net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost."
For example, when grandparents buy their grandchildren toys they will most likely end up under their beds, in the garage or hidden under other toys. The money is basically wasted because the toy was not worth spending. New toys will in the market and kids will be begging and soon forgetting them.
Sofia Radoslovich
P.5
Deadweight loss is when a person buys an item for more than it's worth in the eyes of the recipitent.
ReplyDeleteAccording to dictionary.com deadweight loss is "the costs to society created by an inefficiency in the market."
An example of deadweight loss would be if my dad bought me a Bon Jovi CD for $20. I would of only bought the CD if it was $15.
Billy Schlesinger
Period 3
Deadweight loss is simply not utilizing the satisfaction; paying more for less utility.
ReplyDeleteInvestopedia defines Deadweight Loss as, "any deficiency due to an inefficient allocation of resources."
For example, my father purchased a jurrasic park jeep. Spending the same amount of money he could have purchased a new VW. Instead, my satisfaction of the JEEP incurred deadweight loss.
In regard to this article. I agree 100%.
JORDAN G YOU KNOW ME Period 5
Deadweight loss occurs when people buy gifts at a certain price without giving it much thought; as a result, the value of the gift is much less that what was actually spent because the people receiving the gift are dissatisfied and won’t use it much.
ReplyDeleteThe Economic glossary defines deadweight loss as a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
An example of deadweight loss is when someone buys a dress for $200 and they only wear it once or twice. The dress is stuck in the back of the closet and never used again, making its value less than what it was purchased for.
Ana Manzanares
P. 3
Deadweight loss is when the value of the good is higher than the actual satisfaction the recipient gets from the good.
ReplyDeleteAccording to Investopedia.com, deadweight loss is defined as "the costs to society created by an inefficiency in the market."
An example of this would be if I bought someone an iTunes card and he or she uses Limewire. The iTunes card would not be worth anything to them since they already have the music at their fingertips for free.
Marla Munro
P.4
Dead weight loss is when someone buys a gift for someone else and they do not receive the same amount of satisfaction that you thought they would. This is technically a waste of money because they do not appreciate it as much as they would something else so in the end it would have been easier and more economical to just give them money and have them buy something themselves. For example, if I got my sister a new shirt but because she doesn't like the brand or the color it would be a dead weight loss because she will just let it sit in her closet without ever wearing. If she would have just bought the shirt she wanted herself I would not have wasted my money on a different, less satisfactory one.
ReplyDeleteAccording to Dictionary.com, it means "The costs to society created by an inefficiency in the market."
I personally agree with this article because there would be a lot less spending because we wouldn't get the extra little gifts and would just spend money on 1.
Alli England
pd. 3
Deadweight loss occurs when an item is valued at a higher rate than what the consumer considers it to be worth in his/her mind.
ReplyDeleteAccording to About.com: Economics, Deadweight loss measures the inefficiency caused from a market distortion, such as a tax levied on an item or a minimum price law.
For example, deadweight loss would occur if one were to sign up for the New York City Marathon, but never end up running it. Therefore the $90 registration fee would be wasted, making it deadweight loss to the consumer. The marathon collected the money for nothing.
Dillon Boslow
Period 4
Dead Weight Loss: The Gift That Stops Giving
ReplyDeleteAccording to the Economic Glossary deadweight loss is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost. This is usually the combination of lost consumer surplus and lost producer surplus, and indicates of the inefficiency of a situation.
When people who live in Florida buy those season passes to Disneyworld, it seems like a example dead weight loss. The family that bought the pass may only go twice in the year that the pass is good for. It would only be a reasonable purchase if you lived close to Orlando and could have easy access to the theme parks, but even then you might tire of "It's a Small World", as I have.
Dead Weight Loss occurs when the price for an item exceeds its use or satisfaction for the cosumer. This is most common when giving gifts.
Charlie Vilmar
Period 6
I find this article to be very true. In many cases, when someone receives a gift they make pretend they like it when they really don’t to give the person who gave them the present satisfaction. Why spend on someone else when you can just spend on yourself? It sounds selfish but think about it- when you buy something for yourself you are guaranteed to like or else you wouldn’t spend your money on it, but when someone else buys something for you they don’t know if they are spending their money well or wasting it.
ReplyDeleteAccording to the Economic Glossary, deadweight loss is defined as “A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost”.
A perfect example of deadweight loss is buying a gift for someone. When a person receives a gift, whether it is clothing, jewelry, perfume, etc., that they don’t like, they often do not return it and just stuff it in their room. Therefore, it was a waste of money for the “gift giver” to buy the gift in the first place. This is very true during the holiday season.
Another example of deadweight loss is the gifts my mom buys me for my birthday and Chanukkah. In past years, my mom has bought me one gift that when I open it, I act like I like it but really she knows I don’t. I end up going back to the store and switching it out for something else. So, it was a waste of money for my mom to buy me the gift in the first place. This is also a perfect example of scroogenomics as my mom could have spent the money on herself rather than on a gift I ended up not even liking.
Natalie Deutsch
P.1
Deadweight loss occurs when something is bought for more than it is worth in the eye of the receiver thus not generating $1 of satisfaction for every $1 spent; as it would be had we simply bought for ourselves
ReplyDeleteThe Economic Glossary defines deadweight loss as "a net loss in social welfare that results because the benefit generated by an action differs from the foregone oppurtunity cost."
A classical example would be parents buying a young child clothes for Christmas. A young child wants toys and things to keep him/her entertained and buy a child clothes, a lack of satisfaction is achieved.
Hsiao-Wen Chang
pd 7
According to Economypedia.com, “deadweight cost refers to a loss in economic efficiency that is created when, for a product (goods or services), equilibrium is not Pareto optimal. In this scenario, people for whom marginal cost is greater than marginal utility are using a product. Also, people for whom marginal cost is less than marginal utility are not consuming it. Various reasons are attributed to a deadweight loss situation, which include monopoly pricing, taxes, externalities and subsidies.”
ReplyDeleteMy definition of deadweight cost is what was not gained from receiving a gift. In other words, the personal satisfaction of a gift minus the price of a product is the deadweight cost. Overall, this is a factor to consider while going holiday shopping, but giving is always a good thing. One reason to celebrate the holidays is to show your appreciation for others, so I feel that people should still give gifts, no matter what the economy is doing.
Andrea Mansourian p.6
Dead weight loss is simply paying more for little or less utility. An employer can be paying a lot of money for something, but not get his moneys worth.
ReplyDeletePeople are buying expensive tickets to Disney, but are receiving Dead Weight loss, because the price is not worth what they are getting. An example of dead weight loss is when you purchase something, such as an expensive electronic that stops working properly after a few weeks. You spent money that was not worth the item.
Isabelle Boutros
Period 6
According to econmodel.com deadweight loss is "the inefficiency caused by, for example, a tax or monopoly pricing."
ReplyDeleteSimplified, this means that deadweight loss is when something is bought for a greater price than is deemed worthy by the person recieving it. This results in a loss of value.
An example of deadweight loss would be my friends dog food. Certain members of her family insist on buying the dog the most expensive food they can find, however, the dog shows no preference to the food compared to an averagely priced alternative. The fact that the dog pays no special attention to the food shows that it does not feel that it is a better brand. The excess money spent on the food therefore is wasted.
Dead weight loss is described as inefficient funds for a specific resource created by the society.
ReplyDeleteThe Economic Glossary defined dead weight loss as a "net loss in social welfare that resultsbecause the benefit generated by an action differs from the forgone opportunity cost."
For Example, buying a purse from coach for $500 and it tares when the same purse (different maker) is at wal-mart for $20 and is more sturdy. Paying more for less quality.
Deadweight loss, in economics, is basically an surplus obligation that is a loss of economic coherence. This occurs when balance for an item is not favorable.
ReplyDeleteAccording to www.economist.com, deadweight loss is the extent to which the value and impact of a tax, tax relief or SUBSIDY is reduced because of its side-effects.
For example, deadweight loss occurred when I was given a gift for my birthday from my friends. I definitely did not like it and wasn't going to use it; therefore, I returned the gift and bought something I was going to get more use out of.
Jolie Schrager-Period 6
Dead weight loss is when someone would buy a gift of some sort for a person not knowing if they would like it or not, and when they see what it is, they don't like it so then you are losing money and they can't even return the gift. Which results in a loss of money.
ReplyDeleteAccording to Investopedia.com, Dead weight loss means "The costs to society created by an inefficiency in the market".
An example of this could be, On my birthday, my mother bought me a nice toaster which had so many interesting features that would blow your mind away, and she was so excited for me to open it. Right when i opened it, my smile turned into a frown. I thought to myself "why do i need a coffee maker on my toaster" and once i thought that, i knew i would never use this gift because i have my old toaster that works just fine from the last birthday. So the point is that my mother wasted and lost money because i did not want a toaster and will not use it.
Alec Mallinger
P.6
The defintion of deadweight loss is the costs to society created by an inefficiency in the market.
ReplyDeleteAn example of this act is when your grandmother buys you a very unsatisfying gift, which therefore sits in your room untouched until you remember it is there, causing the gift to go to waste.
Chrissy Reynolds
Period 5
Deadweight loss is when an item's value in a consumer's mind is lower than the monetary value of the item.
ReplyDeleteor in Investopedia's words: any deficiency due to an inefficient allocation of recources.
Example:
Taxes which cause a good to cost more than its actual value to a consumer cause dead weight expenses.
Deadweight loss is when you spend a lot of money to purchase someone a gift because the value of it is meaningful to you but when in actuality the gift is worth less to them then you actually paid for it.
ReplyDeleteAbout.com defines it as
"Deadweight loss measures the inefficiency caused from a market distortion Such as ax levied on an item or a minimum price law."
Anna w. Pd 6
for example-
if someone purchases there friend a shirt for Christmas and it costs a lot of money and the friend doesn't like it very much and would rather have had something else.
Deadweight loss is the difference in value for an object that is bought for someone buy someone that values it more. For example, if a person bought a gift for $10 and the recipient only thinks it is worth $5, than the extra money spent on it is the deadweight loss. An example is when someone buys a t-shirt for someone for their birthday. The shirt might not fit that person, which makes the object go to waste. "The Economist" defines deadweight loss as a waste of resources that could be averted without making anyone worse off.
ReplyDeleteAdam Greenstein
Period 6
Deadweight loss is when a person recieves an item that is not worth as much value to them as the price that it was purchased. This occurs a lot during gift exchanging.
ReplyDeleteEconomic Glossary defines deadweight loss as: A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
An example of deadweight loss is when my parents got me a duffel bag for the holidays. They spent a good amount of money on a red suitcase that i did not even like and would not have bought for that amount with my own money.
Elan Kissin
Period 6
Deadweight loss occurs when money is invested in an item and the return value of the item is less than the invested value.
ReplyDeleteInvestopedia defines Deadweight Loss as, "any deficiency due to an inefficient allocation of resources."
Example of Deadweight loss:
In a married couple, the wife wishes to have a puppy as the family pet because it would provide company to her and kids while the husband is at work. The wife decides to buy the puppy, without first discussing it with the husband. After the money has been spent on the puppy, and husband returns home, the husband is sneezing and tearing up. The husband had an allergy of animal dander, and the puppy had to be given away. Thus, deadweight loss was experienced.
David Schneider
Period 5
According to dictionary.reference.com:A deadweight loss is the cost to society created by an inefficiency in the market.
ReplyDeleteIt can pertain to any deficiency due to an inefficient allocation of resources.
For example, if I spend fifty dollars on twenty boxes of Good & Plenty as a gift for my sister, it would be a deadweight loss to her and me. She does not like the Good & Plenty candy. The fifty dollars I spent on the gift and the time getting the gift would be wasted. More than likely she would return the boxes of candy.
Jennifer Karekos
Period 6
Dead weight is an inefficiency that occurs when both the reciever and specially the buyer end up dissatisfied by the product. The buyer believes the item will fully fulfil the reciever desires but that all ends up wasted.
ReplyDeletea perfect example would be my dad wehn he goes on business trips and buys things to bring back home for us. Even though the thought is adorable, the present usually end up staying in my closet and i never take them out. sadly, we just dont have the same taste in many things, and there has not been one time that i did not smile and said that i loved it. we've all been there. Therefore the article explains very well what happens during the holiday season and offers a very reasonable solution.
Thalia Michaels
Per. 6
Dead weight loss is can be depicted as someone buying a gift and when the receiver of that gift sees the gift he\she is unsatisfied. This translates into a loss for the consumer who bought the gift and the recpient of the gift.
ReplyDeleteThe economics sub division of about.com defiens dead weight loss as a measure the inefficiency caused from a market distortion, such as a tax levied on an item or a minimum price law. The deadweight loss is measured by the sum total of both the consumer surplus and producer surplus caused by the policy. And investopedia defines it as the costs to society created by an inefficiency in the market.
An example of dead weight loss that comes to mind is last Christmas when my parents bought me a barney sweatshirt. I really didn’t like the picture of barney on the front and the colors were all wrong. So that was less money out of my parents pocket and dissatisfaction for me.
Deadweight loss occurs when a consumer spends more money on a product than what it is actually worth to those who are receiving it. Accordong to investopedia.com, deadweight loss is " The costs to society created by an inefficiency in the market." For example, my friend gifted me some perfume that didn't smell so good. She had paid a good amount of money for it but...it didn't have too much value for me because I never use it. It wasn't worth anything to me though she paid a lot of money for it.
ReplyDeleteBarbara Efraim
pd. 6
Deadweight loss is an economic situation where there is a permanent loss of value or wealth without any counter-balance of increased value or wealth to anybody on either side of the economic exchange.
ReplyDeleteA personal example from my family is that we recently found a 50 dollar gift card that was given for a birthday which had now expired. There was a permanent loss of 50 dollars of the person who had bought the gift card, but sense the car was not used for any valuable service or good it became a deadweight loss.
Another example would be the price gouging during a hurricane. People buy emergency items, like generators, at predatory pricing that is far above their value. The difference between their actual value and cost would be a deadweight loss.
Jackie Green
Pd. 6
Dead weight loss occurs when someone spends more money on an item then it is actually worth and then the person ends up being dissatisfied.
ReplyDeleteThe Economic Glossary defines deadweight loss as: net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost. This is usually the combination of lost consumer surplus and lost producer surplus, and indicates of the inefficiency of a situation.
An example of deadweight loss would be if my mom buys me an expensive shirt for my birthday, but I wind up returning it to the store because i don't like it. The money spent on the shirt was wasted and it caused dissatisfaction.
Sara Khan
Per.3
Matt Mackler
ReplyDeletePeriod 3
Deadweight loss is when a consumer buys a gift for a friend without knowing what the friend wants. When the consumer gives the friend a gift that the friend does not like, the gift becomes deadweight and less meaningful. For example if i go shopping for a friend who wants a skateboard for his birthday but instead I buy him a basketball it results in deadweight loss as my friend is not satisfied with the gift I got him.
The term "deadweight loss" can be applied to any deficiency due to an inefficient allocation of resources. Lost production due to an innacurate forecasting for labor is an example of deadweight loss.
from: www.answers.com/topic/deadweight-loss
Dead weight loss are the costs to society created by an inefficiency in the market.
ReplyDeleteDefined by Investopedia.com as:
Dead weight loss means "The costs to society created by an inefficiency in the market".
A perfect example of dead weight loss is when you buy a birthday present for someone thinking that they will love the gift. In reality that person did not get the same self satisfaction that you had thought they would. That item then ends up sitting in a nice place in their closet for many years. In the end the money was spent on an item that will never be used and that money goes to waste which results in dead weight loss.
Ali Schnurmacher
p. 5
Deadweight loss occurs when someone spends more money on an object than it is actually worth, leaving the recipient unsatisfied.
ReplyDeleteThe Economic Glossary describes it ass, "A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost."
An example of deadweight loss, is during the holiday season, when you buy an expenisve gift for someone and they barely use it, if at all. The item is wasted.
Deadweight loss is the cost to society created be an inefficiency in the market.
ReplyDeleteFor example, my mother bought a different type of cereal for my father. He didn't like it. Therefore, my mother wasted both her time and money by purchasing it, because the box will remain full and the contents uneaten.
Chelsea Roth
Period 5
Deadweight loss happens when the buyer pays more for an item than the reciever is willing to pay, based on the utility of the item.
ReplyDeleteThe regulation body of knowledge defines deadweight loss as:
The measure of economic inefficiency following misallocation of resources from producing too little or too much of a product. Total economic welfare is maximized when price is set at marginal cost, achieving allocative efficiency.
A classic example of this comes from christmas. Once in a while we all recieve clothes or useless items like shirts, cups or other random items. These things provide low utility for me, making the money spent inefficient; since it is neither benefiting the giver nor the reciever. So I experience deadweight loss everytime I recieve a toy I will never touch because it is a misallocation of our limited resources namely cash.
Daniel F Diaz
Period 1
Investopedia defines the phrase "deadweight loss" as any deficiency due to an inefficient allocation of resources. Lost production due to inaccurate forecasting for labor is an example of a deadweight loss.
ReplyDeleteIn other words, dead weight loss is when someone spends money on a product and does not receive full satisfaction for what the product is really worth.
An example of dead weight loss could be if I bought my sister a tank top with the logo of her university on it. It would be considered dead weight loss because she goes to Michigan where no one wears tank tops due to its extreme climatic weather conditions of freezing temperatures. The money I spent on the shirt would go to waste.
Deadweight loss is when the value of an item is higher in the buyers's mind than the receiver's.
ReplyDelete"A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost."
An example would be buying a baby expensive designer clothes thinking it makes a difference to the baby when it really doesn't. Babies won't know the difference between baby gap and true religion jeans. And even if they did, the jeans wouldn't be any more valuable.
Eden Mordechai
period 6
Deadweight loss is when we make less-informed choices to buy gifts worth less than the money spent, and leave recipients less than satisfied. The economic definition of deadweight loss is "a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost". An example of this would be when you buy a person an ipod for Christmas, however, that person already has and ipod. So, the person would be left less than satisfied, and would not really need the ipod. Thus, he would probably end up returning the gift.
ReplyDeleteNimita Uberoi
pr.4
Deadweight loss is the costs to society created by an inefficiency in the market; in other words, an item that is worth less than what it actually cost. Deadweight loss is the inefficiency caused by, for example, a tax or monopoly pricing(econmodel 1). When a monopoly of any company exists pricing is determined without the worry of competition. This in return makes prices and materials more expensive than they are actually worth. Which leads to deadweight loss- the overspending on something not worth that said cost.
ReplyDeleteDeadweight loss is any deficiency due to a misuse of alloted resources.
ReplyDeleteAn example would be a power company, trying to get its product out as cheaply as possibly without any regard to the environment. The deadweight would loss be the damage to society as a result of the damaged environment.
Marissa Wollstein
Per 3
Dead weight loss is when the money spent on a product is not equal to the receiver's satisfaction with the product.
ReplyDeleteWikipedia:
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.
Example:
My uncle works at a book store, and every birthday or holiday he buys me some awful, discounted reject book that just ends up sitting in a pile at the back of my closet. This waste of money, resources and ultimate lack of my satisfaction is dead weight loss
...if only he worked at the singing fish store
Deadweight loss is any deficiency due to an inefficient distribution of resources. It "results because the benefit generated by an action differs from the forgone opportunity cost."- Economic glossary
ReplyDeleteOne example of deadweight loss would be if I were to borrow 20 dollars from someone to buy 2 dollars worth of things like m&ms. If I was charged interest and I returned the money back 3 weeks later, I would have wasted a lot more money than I should have based on the satisfaction of eating those m&ms.
Period 5
Deadweight loss is the inefficiency caused by, for example, a tax or monopoly pricing. My opinion of deadweight economics is any cost paid for a service, good, or event that didn't work or was not attended. For example, signing up for a poker game and paying a $50 entry fee but not attending for no apparent reason, which was a loss of $50 with no potential gain.
ReplyDeleteDead weight loss is when a product is bought for a certain amount of money, but the satisfaction recieved out of the product is less than what was paid. As defined by investopedia.com "The costs to society created by an inefficiency in the market."
ReplyDeleteAn example of this would be an extremely expensive soccer jersey for someone who hates soccer, but loves tug-of-war. The jersey will end up never being worn and never being appreciated.
Alex Mazza
Period 3
Rachel Besser
ReplyDeletePeriod 1
Deadweight loss is when you buy a gift for someone and their satisfaction is less than the cost of the gift. Because the recievers satifaction is less than the gift was worth it causes extra unneccesary cost.
http://www.econmodel.com/classic/terms/deadweight_loss.htm says that a deadweight loss is the inefficiency caused by a tax or monopoly pricing. An example of this is if there is a tax put on an item that lowers the quantity demanded for that item which creates a inefficiency in the market.
Deadweight loss is the lower satisfaction of a buyer of a good, due to the reaction of the recipient not expected by the giver.
ReplyDeleteEconmodel.com defines Deadweight loss as the inefficiency caused by, for example, a tax or monopoly pricing.
An example is when a grandparent gives a gift such as a scarf that they bought or an article of clothing hoping for a happy reaction, only to receive the false happiness. this is because the recipient really only wanted money to buy themselves a gift. the false reaction lowers the buyers thought on the gift and therefore causes a Deadweight loss.
Joseph Dancel
pd 1
Deadweight loss occurs when the equilibrium of the money spent on a product and the satisfaction resulted from the purchase is not present. In other words, the purchaser spends more money on the product than what it is worth because the recipient of the product will not be satisfied and will find no use in the product.
ReplyDeleteInvestopedia defines deadweight loss as the costs to society created by an inefficiency in the market.
An example of deadweight loss is displayed in my household every few weeks or so. My father is a Comcast Technician and whenever he does a good job fixing a customer’s cable box or Internet, the customer sends in a comment to my dad’s boss. The comment says that my dad did a great job fixing whatever needed to be fixed. My dad’s boss then goes out to buy a box of granola bars; as a reward, he hands my dad a granola bar. When my dad comes home he throws the granola bar into the trashcan and then proceeds to complain about how ridiculous and unneccesary it was for his boss to buy him this snack.
-Brittany Williams
Period 6
Deadweight loss occurs when the satisfaction for a product is less than what the product costs, or is actually worth. An example of this could be giving someone a gift that they find worthless and unusable. The money spent on the product is substantially higher than the satisfaction that occurs as a result, which would be an inefficient use of resources.
ReplyDeleteDimitre Ganev
Period 5
Deadweight loss is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
ReplyDeleteFor example, every Christmas my aunt Lou gives me some kind of outrageous christmas hair tie, usually featuring a giant snowman bigger than my actual head, or santa clause. Because I already have an enormously large collection of useless christmas hairties, this year when my aunt Lou gives me another one, it will be considered a deadweight loss, because of my lack of space to store the hair ties, will lead to my ultimate lack of satisfaction.
deadweight loss is a loss of economic efficiency that can occur when equilibrium for a good or service is not optimal or The costs to society created by an inefficiency in the market sometimes by a tax or monopoly pricing.
ReplyDeleteExample
If i like to smoke Camel cigarettes verse Marlboro because I have always smoke Camel and i think it tastes the best. The government then targets Camel and decided to charge 5$ for 1 pack verse the 2.50$ for the Marlboro. I now change and smoke Marlboro now even though i dont like it. This is an excess burden caused by the government and me (the consumer) has a loss in utility.
Michelle Rich
per. 1
Deadweight Loss is when a person purchase a gift for someone without the person knowing if the other person will enjoy there gift which ends up in say person buying a high priced gift that the person has little worth to the person recieveing it. and this causes a waste/loss of money.
ReplyDeleteInvestopedia states deadweight loss as: any defficiency due to an inefficient allocation of resources.
For Example, my grandma sent me some clothes for my birthday and I did not like the material in which it was made
Zack Chikovsky
Period 4
Deadweight loss is "the inefficiency caused by, for example, a tax or monopoly pricing," or "either people who would have more marginal benefit than marginal cost are not buying the good or service, or people who would have more marginal cost than marginal benefit are buying the product."
ReplyDeleteIn other words the best gift is one you as a consumer buys yourself and is satisfied with.
There are many examples to explain what dead weight is:
My mom likes to buy stuff for me when she shops but when she brings it home i either like it or absolutely hate it. We don't always have the same taste so i usually don't like the item she bought me. As a result my mom wasted her money and time to buy it for me and it usually gets returned so that it doesn't sit in my closet for years with a tag still on it. There is a combination of a lost consumer surplus and lost producer surplus.
Katherine Romer
ReplyDeletePeriod: 5
About.com defines Deadweight loss as “the inefficiency caused from a market distortion, such as a tax levied on an item or a minimum price law. The deadweight loss is measured by the sum total of both the consumer surplus and producer surplus caused by the policy.”
After reading about deadweight loss, I have realized that deadweight loss occurs as one receives something (a gift or something of value) but does not, however, feel or receive the full satisfaction of that something.
For example, if I went to Kmart and bought my mother a box of red pens, but it turns out that she only uses blue pens. So, the waste of money and the fact that she doesn’t use red pens results in this deadweight loss.
Deadweight Loss is where someone will buy something, like a gift, with very little information on what they really want, and therefore that person may not be very happy with it. It's overall a waste of money.
ReplyDeleteThe online definition for deadweight loss is "the loss in producer and consumer surplus due to an inefficient level of production and the difference between what producers gain and what consumers lose when output is restricted under imperfect competition."
For example, if I wanted chocolate chip cookies but my friend only got me peanut butter cookies, and I just so happen to be allergic to peanuts, then it would be a waste of money because I won't be able to eat those peanut butter cookies, therefore they are the deadweight loss.
Brandon Schuster
Period 5
Wikipedia defines a deadweight loss as a loss of economic efficiency that can occur when either people who would have more marginal benefit than marginal cost are not buying the good or service, or people who would have more marginal cost than marginal benefit are buying the product. Deadweight loss can be caused by monopoly pricing, externalities, taxes or subsidies, and binding price ceilings or floors. The term deadweight loss may also be referred to as the "excess burden of monopoly" or the "excess burden of taxation".
ReplyDeleteFor example, consider a market for nails where the cost of each nail is 10 cents and that the demand will decrease linearly from a high demand for free nails to zero demand for nails at $1.10. In a perfectly competitive market, producers would have to charge a price of 10 cents and every customer whose marginal benefit exceeds 10 cents would have a nail. However if only one producer has a monopoly on the product, then they will charge whichever price will yield the highest profit. For this market, the producer would charge 60 cents and thus exclude every customer who had less than 60 cents of marginal benefit. The deadweight loss is then the economic benefit forgone by these customers due to the monopoly pricing.
Kaitlin Calihan
Period 04
Deadweight loss is when the marginal cost is greater then the marginal benefit. The people with more marginal benefit then cost are not purchasing the product.
ReplyDeleteFor example: when a parent takes a child to Disney World for their 2nd birthday. The child will likely not remember the trip within a year or maybe even as few as a couple weeks. The parent has spent a lot of money on the trip, and the child will not remember it in such little time.
Ross Simon
Period 3
Deadweight loss is the costs to society created by an inefficiency in the market. As defined by investopedia.
ReplyDeleteDeadweight loss is the void a product or gift creates when the product is bought but not satisfied by the reciever of the product. The buyer loses money for buying it, and the reciever is not satisfied.
An example of this is when my mom thinks that I like green danimals yogurt yet everyone she restocks she ends up having to throw them out because I did not like those since I was 7 and didn't bother to look at it for 3 weeks in my fridge.
Vadim zimet per 3
Julian cortes
ReplyDeleteper. 4
deadweight loss is when someone buys a gift for someone else paying X amount of money and when the other person receives it, to them it isnt worth X amount of money or more.
Nationmaster.com defines deadweight loss as " a permanent loss of well being to society that can occur when equilibrium for a good or service is not pareto optimal, (that at least one individual could be made better off without other being made worse off".
one example is from about 5 years ago when my parents one my birthday bought me, among other gifts, a shirt that said I AM A GENIOUS, they spent about $40 on that shirt and even tho the shirt is confortable, i hate it and i've only worn it once before. I would never have bought that shirt and technically my parents spent $40 on a shirt i never wore and is sitting at the back of my closet. THAT is deadweight loss
Dead weight is when the price of a product for the giver is higher than the benefit of the product is to the reciever.
ReplyDeleteDead weight is the inefficency caused by monopoly pricing according to econmodel.com
An example of this is when my dad gave me an expensive pen for my birthday. The time and effort which he put into finding me this give was more than the amount of satifaction that the gift gave me, as it just sat on my desk for years.
Deadweight loss is when you buy a gift for someone with out much thought as to whether the recipient would like the gift, therefore making it a waste of money.According to the Economic Glossay deadweight loss is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost. An example of this would be taking your young infant on a trip across the world. Yes, there is an opprotunity to bond as a family, yet is the cost of travel and hotels worth it when the child wouldnt know the difference between the Great Barrier Reef and the lake behind your home.
ReplyDeleteMariah Schaflin Period 3
Deadweight loss is when you purchase a gift for someone and that person is unsatisfied with the gift. This gift is therefore a waste of money hence the term deadweight loss. This however is only one meaning of the word, according to investopedia deadweight loss is applied to any deficiency due to an inefficient allocation of resources.
ReplyDeleteAn example of this is a parent purchasing a gift that the child is unappreciative of is a deadweight loss, when the parent could have put the money directly into the child's bank account for his/her use at a later date.
stefanie t
period 5
Deadweight loss happens when someone purchases an item and then realizes that they paid more money for an item the dont truly desire.
ReplyDeleteAs www.argmax.com defines, "The total surplus lost relative to an efficient market due to market imperfections, taxes, or other factors."
An example of this is when my mom buys me a new brand of chips, but i end up not wanting them at all. Therefore my mom paid more money for something i didnt even desire.
Kate Tanner
Period 1
Deadweight loss is defined as a loss of economic efficency that can occur when a person buys something that makes them better off, but negatively affect someone else. For example,when a mother buys her daughter a new outfit to wear, but her daughter hates it and never wears it. It was a waste of money because the item was never used.
ReplyDeleteAccording to Economic Glossary a deadweight loss is a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost. This is usually the combination of lost consumer surplus and lost producer surplus, and indicates of the inefficiency of a situation.
ReplyDeleteAn example of a deadweight loss is when my mother goes to the store, spends her money, and buys me clothes. She brings the clothes home and is very excited to show me, but when pulled out of the bag, i hate them. I would not wear the clothes and the money could have gone to something else that i would have worn.
P.5 Lindsay Smith
Dead weight loss is considered a purchase of an item that is not worth the price spent on it and will not bring satisfaction to the owner of the item.
ReplyDeleteThe Economic Glossary describes deadweight loss as "A net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost"
An example of a dead weight loss is say you mow your neighbors lawn in exchange for some compensation. While you expect to get money your neighbor decides it would be nicer if he purchased you a non refundable gift card to Morton's Steak House, while little does he know that this is your least favorite resteraunt in town and you will never use the gift card.
Ryan Landis p.1
A deadweight loss as defined by dictionary.com is the cost created by inefficiency in the market place. Deadweight loss can pertain with any deficiency due to an inefficient allocation of resources. The most common area where deadweight loss will occur is in gifts and often monopoly pricing. An example of a deadweight loss would be, if I went over to the mall and bought a neon green t-shirt for my economics teacher, not knowing that he did not like the color neon green. I then proceed with my gift and gave him the neon green t-shirt. He would then most likely not wear the shirt and it would end up in the bottom of a dresser drawer. This is an example of deadweight loss because I have lost the money for the t-shirt along with the time that it took me to go to the mall and purchase the t-shirt.
ReplyDeleteZachary Bacchus
5th Period
Deadweight loss occurs when consumers puchace products unaware that they are worth less than the cost, ultimately creating customer dissatisfaction.
ReplyDeleteThe Economic Glossary defines deadweight loss as a net loss in social welfare that results because the benefit generated by an action differs from the foregone opportunity cost.
An example of deadweight loss would be if I decided to buy my mother a Footlocker Giftcard. My mother does not shop at Footlocker so the card would most likely remain unused. This is an example of deadweight loss because I have wasted money on a gift card and the purchace created dissatisfaction on the recieving end.
Christopher Murry
Period 1