Government Is Lobbied to Institute Price Controls Because

question 151

Multiple Choice

Government is lobbied to institute price controls because:

• A) they tend to increase total producer surplus and consumer surplus.
• B) people care more about their own surplus than they do about total surplus.
• C) people care more about total surplus than they do about their own surplus.
• D) they reduce producer surplus, but they raise consumer surplus more than enough to compensate.

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Definitions:

Support

The assistance or encouragement provided by individuals or organizations to others, which can be emotional, social, financial, or practical.

Encouragement

The action of giving someone support, confidence, or hope to motivate positive outcomes or behaviors.

Realistic Expectations

Anticipations or beliefs about future events or results that are based on practical and factual grounds, rather than on wishful thinking or idealism.

Communication

The exchange of information, thoughts, messages, or emotions between individuals or groups through spoken words, writings, behaviors, or symbols.