Price Controls Will Tend to Cause Misallocation of Resources Because

question 19

Multiple Choice

Price controls will tend to cause misallocation of resources because

• A) production (or opportunity) cost no longer corresponds to market price.
• B) people are unable to determine their preferences at the high or low price.
• C) producers no longer have incentive to be profitable.
• D) consumers no longer have incentive to spend their income efficiently.

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Definitions:

Proteins

Large, complex molecules essential to the structure, function, and regulation of the body's cells, tissues, and organs.

Blood

A vital fluid in organisms that transports necessary substances such as nutrients and oxygen to the cells and carries waste products away.

Thymus Gland

A primary lymphoid organ of the immune system, located in the upper anterior part of the chest cavity, playing a vital role in the development of T cells.

White Blood Cells

Cells of the immune system that help protect the body against infections and foreign invaders, including bacteria, viruses, and parasites.