In the Market for Medicine, If Surplus Is Transferred from Producers

question 304

Multiple Choice

In the market for medicine, if surplus is transferred from producers to consumers, from the standpoint of efficiency

• A) the current price of medicine is too high.
• B) the current quantity of medicine is too low.
• C) deadweight loss could be reduced if the current price were lower.
• D) total surplus increased because consumers paid lower prices for the existing inventory.

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Definitions:

Racially Segregated

The enforced separation of different racial groups in daily life, such as in schooling, housing, and the use of public facilities.

African Americans

An ethnic or racial group in the United States predominantly of sub-Saharan African descent.

Armed Forces

Military forces established by a nation to defend its interests and maintain security.

War Production Board

A U.S. government agency established during World War II to coordinate the production of war materials and supplies.