Legal Limits on Prices Will Tend to Cause Misallocation of Resources

question 167

Multiple Choice

Legal limits on prices will tend to cause misallocation of resources because

• A)production (or opportunity) cost no longer corresponds to market price.
• B)people are unable to determine their preferences at the high or low price.
• C)producers no longer have incentive to be profitable.
• D)consumers no longer have incentive to spend their income efficiently.
• E)All of the above are correct.

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Definitions:

Glial Cells

Non-neuronal cells in the nervous system that support, protect, and nourish neurons, playing crucial roles in maintaining homeostasis.

Pyramidal Cells

A type of neuron found in areas of the brain such as the cerebral cortex, known for their pyramid-shaped cell bodies and involvement in many cognitive processes.

Phospholipids

A class of lipids that are a major component of all cell membranes as they can form lipid bilayers.

Membranes

Thin layers of tissue that cover surfaces, line cavities, and divide spaces or organs, often serving as barriers or interfaces.