Prohibiting Price Increases in Situations of True Scarcity

question 49

Multiple Choice

Prohibiting price increases in situations of true scarcity

• A)prevents the market mechanism from reallocating resources more efficiently.
• B)discourages production.
• C)may lead to extreme shortages of vitally needed products.
• D)All of the above are correct.

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Definitions:

Glucagon

A hormone produced by the pancreas that increases blood glucose levels by promoting the breakdown of glycogen to glucose in the liver.

Insulin

A hormone produced by the pancreas that regulates blood glucose levels by facilitating the uptake of glucose into cells.

Insulin Resistance

A condition in which the body's cells become less responsive to insulin, leading to higher blood sugar levels and often predisposing individuals to type 2 diabetes.

Insulin Deficiency

A condition characterized by inadequate production of insulin by the pancreas, leading to elevated levels of glucose in the blood; a common aspect of diabetes mellitus.