A government-imposed price floor has what effect on efficiency?
A. Consumer surplus increases.
B. There is little dead weight loss.
C. Consumer and producer surplus increases.
D. Producer surplus increases.
Answer: D
You might also like to view...
Which of the following best defines the IS curve?
A) the combinations of i and Y that maintain equilibrium in the goods market B) illustrates the effects of changes in i on investment C) illustrates the effects of changes in i on desired money holdings by individuals D) the combinations of i and Y that maintain equilibrium in financial markets
Which of the following statements is a public choice economist most likely to agree with?
A) People who work for the federal government are naturally lazy, whereas people who work for private firms are naturally hard working. B) Good government comes from good people, bad government comes from bad people. C) Change the institutional arrangements, and you will change behavior. D) Bad people naturally gravitate toward a career in politics. E) Good people naturally gravitate toward a career in politics.