Which of the Following Is a Major Disadvantage of Setting

question 47

Multiple Choice

Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?

• A) Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line.
• B) Waiting in line imposes a cost on the consumer; paying higher prices does not.
• C) Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output.
• D) Waiting in line benefits consumers at the expense of producers.

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Definitions:

Functional Conflict

Functional conflict is a healthy, constructive disagreement between two or more individuals or groups that leads to improved decision-making or outcomes.

Culture on Behavior

Culture on Behavior examines how the shared values, norms, and practices within a culture influence the behaviors of its members.

Dysfunctional Conflict

A disagreement or conflict that leads to negative outcomes, hindering organizational performance and goals.

Group Cohesion

Group cohesion refers to the bonds that hold group members together, affecting their willingness to cooperate and their sense of unity.