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:

Kant

Refers to Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and aesthetics.

Theoretical Standpoint

A perspective or viewpoint informed by a coherent set of theoretical ideas, often guiding analysis or interpretation.

Practical One

Refers typically to a person or approach that focuses on practical actions and solutions rather than theoretical or abstract ideas.

Aristotle

An ancient Greek philosopher and scientist, a student of Plato and teacher of Alexander the Great, known for his contributions to many fields of knowledge.