Which of the Following Best Represents the Misallocation of Resources

question 38

Multiple Choice

Which of the following best represents the misallocation of resources that would occur under a price ceiling on bottled water following a major hurricane?

• A) Bottles of water sit on the shelves because nobody can afford it.
• B) A family in a distant state takes time off work to bring bottled water to the hurricane-ravaged area.
• C) A family in a distant state gives bottled water to its dog, but a family in the hurricane area cannot find bottled water to drink.
• D) Families in the hurricane area brush their teeth with bottled water but cannot find enough to drink.

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Definitions:

Common Law Courts

Courts that apply the common law, relying on precedent and judicial decisions rather than codified laws.

Restatements

Codifications of the common law intended to clarify and illustrate principles and rules in various areas of law, published by the American Law Institute.

Common Law

A legal system based on custom, court rulings, and past legal precedents rather than statutory laws.

Procedural Law

The body of law controlling public bodies such as courts, as they create and enforce rules of substantive law.