If the Government Restricts the Selling of Corn So That

question 23

Multiple Choice

If the government restricts the selling of corn so that the quantity is less than the equilibrium quantity, then the policy I. creates a deadweight loss.
II) decreases total surplus.

• A) Only I is correct.
• B) Only II is correct.
• C) Both I and II are correct.
• D) Neither I nor II is correct.

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Definitions:

Class Distinctions

The division of society into different social classes based on factors such as wealth, occupation, and education, often leading to inequality.

Racial Wealth Gap

The significant disparity in financial resources and asset ownership between different racial and ethnic groups, often due to historical and systemic inequalities.

Toxic Inequality

A term highlighting extreme and harmful disparities in wealth, income, or opportunity within a society.

Thomas M. Shapiro

A sociologist recognized for his research on racial inequality and wealth disparity in the United States.