With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was effective since consumers gained in surplus overall.
B. then the policy was ineffective since consumers gained in surplus overall.
C. then the policy was ineffective since consumers lost surplus overall.
D. then the policy was effective since consumers lost surplus overall.
Answer: v
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Barter is an inefficient means of exchange because
A) barter transactions require a double coincidence of wants. B) barter only occurs in relatively primitive economies. C) demand will not necessarily equal supply. D) in a barter transaction only one party needs to want what the other party has to sell.
Use the following two statements in answering this question: I. All Giffen goods are inferior goods. II. All inferior goods are Giffen goods
A) I and II are true. B) I is true, and II is false. C) I is false, and II true. D) I and II are false.