If the Intended Aim of the Price Ceiling Set at $6

question 1

Multiple Choice

If the intended aim of the price ceiling set at $6, as shown in the graph, was a net increase in the well-being of consumers, then positive analysis would conclude that the policy was:

• A) effective because the surplus gained by consumers through lower prices is greater than the surplus they lost due to fewer transactions taking place.
• B) ineffective because the surplus gained by consumers through lower prices is less than the surplus they lost due to fewer transactions taking place.
• C) effective because the surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices.
• D) ineffective because the amount of deadweight loss is greater than the surplus gained by consumers from lower prices.

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Definitions:

Honesty Test

An assessment tool used by employers to evaluate the propensity of job applicants or employees to be honest and trustworthy.

Employment Interviewers

Professionals responsible for evaluating applicants to determine their suitability for a position, often acting as the liaison between the potential employer and the candidate.

Positive Information

Data, feedback, or input that is favorable, encouraging, or beneficial in nature, often leading to improved outcomes or perceptions.

Late Start Times

The practice of beginning work, school, or other activities later than the traditional or expected time, often to accommodate various needs or improve performance outcomes.