If a Binding Price Floor Were Placed in the Market

question 165

Multiple Choice

If a binding price floor were placed in the market shown in the graph:

• A) quantity demanded would exceed quantity supplied.
• B) quantity supplied would exceed quantity demanded.
• C) the demand curve would have to shift.
• D) the supply curve would have to shift.

Understand why achieving perfection in provision of goods and services (e.g., safety) is not always efficient.

Understand the principle of economic efficiency as a criterion for evaluating economic actions.

Analyze the consequences of actions that have greater costs than benefits on society's welfare.

Identify when an economic activity should or should not be undertaken based on its costs and benefits.

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Definitions:

Temporal Lobes

Regions of the brain that play a key role in transforming short-term memory to long-term memory, among other functions.

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Medical or therapeutic interventions designed to help individuals overcome addiction and dependence on illegal or prescription drugs.

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A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes, leading to impaired daily functioning.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.