If Government Decides to Control the Amount of a Good

question 11

Multiple Choice

If government decides to control the amount of a good allowed to be transacted in a market,this will:

• A)always result in an increase in efficiency in the market.
• B)increase incentives for market participants to engage in black market activities.
• C)result in the equilibrium quantity being produced if the quota is binding.
• D)lead to more of the good being produced.

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Definitions:

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A category of mental disorders involving persistent disturbances in mood, encompassing conditions like depression and bipolar disorder.

Endorphins

The body’s own natural painkillers, which block pain and produce a feeling of well-being.

Sensory Systems

Refer to the complex network of neural mechanisms designed to process sensory information from the environment and the body.

Hallucination

An imaginary sensation.