Which of the Following Is a Major Disadvantage of Setting

question 47

Multiple Choice

Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?

• A) Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line.
• B) Waiting in line imposes a cost on the consumer; paying higher prices does not.
• C) Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output.
• D) Waiting in line benefits consumers at the expense of producers.

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Definitions:

Activation

The stimulation or initiation of activity in an organism, cell, or molecular system, often referring to the triggering of specific processes or responses.

Primary Drives

Innate biological necessities like hunger and thirst that drive behavior and are essential for survival.

Motives

The internal drives that propel individuals to take action towards achieving goals.

Primary Drives

Basic physiological needs such as hunger, thirst, and sexual desire that motivate behavior.