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.

---

Definitions:

Government Spending

The total amount of public funds that a government expends on its services, employees, and programs within a given fiscal period.

Defense Budget

The defense budget is the portion of a national budget that is allocated to military spendings, including salaries, training, operations, and equipment.

Oil Crisis

A period marked by major interruptions in oil supply and subsequent increases in oil prices, often due to geopolitical tensions or conflicts.