Refer to the Diagram

question 119

Multiple Choice

Refer to the diagram. If actual production and consumption occur at Q3,

• A) efficiency is achieved.
• B) an efficiency loss (or deadweight loss) of e + f occurs.
• C) an efficiency loss (or deadweight loss) of a + b + c + d occurs.
• D) an efficiency loss (or deadweight loss) of a + c occurs.

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Definitions:

18th Amendment

An amendment to the U.S. Constitution prohibiting the manufacture, sale, and transportation of alcoholic beverages; later repealed by the 21st Amendment.

Import Quotas

Limitations set by a government on the number or value of goods that can be imported into a country within a specified time frame.

Current Drinkers

Individuals who consume alcohol and have done so recently, within a specific timeframe defined by a study or survey.

18th Amendment

An amendment to the United States Constitution that prohibited the manufacture, sale, and transportation of alcoholic beverages, later repealed by the 21st Amendment.