An unintended consequence of price ceilings is:
A. the loss of surplus always outweighs the benefits of the policy.
B. the producers increase the quality of the goods sold.
C. non-price rationing must occur, and can lead to bribes.
D. the transfer of surplus from producer to consumer rarely is recognized.
Answer: C
You might also like to view...
Which of the following criteria would make gold a poor medium of exchange?
A) value relative to its weight so that amounts large enough to be useful in trade can be easily transported B) Its value depends on its purity, and its purity is not easy to visibly identify. C) divisibility because different goods are valued differently D) durability so that value is not lost by spoilage
Suppose that utility-maximizing consumers in San Francisco pay three times as much for apples as for peaches. What is the ratio of the marginal utility of apples to the marginal utility of peaches?
A. 1/3 B. 3 C. 2/3 D. none of the above E. cannot determine without further information