Do Price Ceilings Misallocate Resources

question 81

Multiple Choice

Do price ceilings misallocate resources?

• A) Yes, because people who value the good the most are unable to bid it away from low-valued uses.
• B) Yes, because people who value the good the least are unable to afford the good.
• C) No, because the good is still allocated based on willingness to pay.
• D) No, because the rich and poor alike stand an equal chance in getting the good.

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Definitions:

Big Five

A model that describes five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Other Models

A term that refers to alternative theories, frameworks, or systems used to explain or understand phenomena, distinct from the most widely acknowledged or mainstream models.

Neuroticism Dimension

An individual's disposition distinguished by susceptibility to nervousness, fright, whims in temperament, uneasiness, longing for what others have, irritability, resentment, and isolation.

Big Five

A model describing human personality as comprising five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.