The difference between quantity restrictions and price ceilings as to their effect on the market is that
A. while price ceilings are efficient, quantity restrictions are not.
B. while some consumers gain from price ceilings, no consumers gain from quantity restrictions.
C. only quantity restrictions make the market inefficient.
D. only price ceilings make the market inefficient.
Answer: B
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Assume that a no-load open-end mutual fund holds securities with a total market value of $12 million, has no liability, and has 500,000 shares outstanding. The net asset value par share of this fund is
A) $24. B) $60. C) $24 million. D) $60 million.
Joe and Rita each have some milk and cookies (Milk on the horizontal axis). Joe's MRS of cookies for milk is 2. Rita's MRS of cookies for milk is 4. Which of the following statements is TRUE?
A) No gains from trade are possible. B) Both Rita and Joe can be made better off if Rita gives Joe some cookies in exchange for milk. C) Rita and Joe are on the contract curve. D) Both Rita and Joe can be made better off if Joe gives Rita some cookies in exchange for milk.