The Person Who Figured Out That It Is Best to Keep

question 35

Multiple Choice

The person who figured out that it is best to keep the milk, bread, and eggs at the back of the grocery store and not at the front probably did not profit as much from this idea as the grocery industry as a whole did. This is because

• A)the concept didn't work.
• B)the concept was highly nonexcludable.
• C)that person's idea was not an innovation.
• D)the concept was not a commodity.
• E)the concept was nonrivalrous.

Understand the concept of market equilibrium and how it is established.

Comprehend the effects of price controls (ceilings and floors) on market equilibrium.

Recognize the outcomes of government intervention in the form of quotas and price controls and their impact on supply and demand.

Analyze the implications of quotas and price ceilings/floors on surplus, shortage, and market inefficiencies.

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Definitions:

Affordable Care Act

A comprehensive health care reform law enacted in 2010 in the United States, aimed at increasing health insurance coverage and reducing the costs of healthcare.

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A right which entails obligations or duties on others to respect or fulfill that right.

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Moral Right

A claim or entitlement to something based on ethical or moral grounds, often concerning fair treatment or respect.