An unintended consequence of price ceilings is:
A. the loss of surplus always outweighs the benefits of the policy.
B. non-price rationing must occur, and can lead to bribes.
C. the transfer of surplus from producer to consumer rarely is recognized.
D. the producers increase the quality of the goods sold.
B. non-price rationing must occur, and can lead to bribes.
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"If production of a good creates an external cost, then, when production is such that the marginal private costs are equal to the marginal private benefits, the market outcome will be inefficient
" Explain whether this assertion is correct or incorrect.
Which of the following is an example of a positive statement?
A) It is too hot to go jogging.
B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
C) When the price of an item increases, people respond by reducing their consumption of the item.
D) The government should balance the budget.