Which of the Following Is an Unintended Consequence of Price

question 31

Multiple Choice

Which of the following is an unintended consequence of price ceilings?

• A) The loss of surplus always outweighs the benefits of the policy.
• B) Non-price rationing must occur and can lead to bribes.
• C) The transfer of surplus from producer to consumer rarely is recognized.
• D) Producers will increase the quality of the goods sold.

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Definitions:

Wages

Generally refer to hourly compensation paid to operating employees; the basis for wages is time.

Workers' Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

Insurance Premium

The amount of money that an individual or business must pay for an insurance policy.

Chronic Problems

Persistent and long-standing issues that resist resolution and continue to affect an individual, group, or system over time.