Which of the following is a result of government price controls?
A) Some people win and some people lose.
B) Price controls benefit poor consumers but harm producers and wealthy consumers.
C) Price controls increase economic efficiency.
D) The deadweight loss from price ceilings is greater than the deadweight loss from price floors.
Answer: A
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Games with a negative-negative outcome:
A. must have a noncooperative equilibrium. B. are not necessarily the best outcome for the players involved. C. result from players acting in their own self-interest. D. All of these statements are true.
A craft union is a labor organization that represents people with a particular skill.
Answer the following statement true (T) or false (F)
The shape of the firm's marginal revenue curve depends ultimately on whether the firm is
A. a revenue maximizer or a profit maximizer. B. owned by a man or a woman. C. a monopolist or a perfect competitor. D. a market share maximizer or a sales maximizer.
A monopolist sets prices above the competitive price and output below the competitive output level. Some customers are willing to pay more than marginal cost, yet do not receive the product. Thus:
A. it is clear that monopolists experience decreasing returns to scale. B. not all gains from trade are exhausted. C. all gains from trade are exhausted. D. it is clear that monopolists do not maximize profits.