The Difference Between Quantity Restrictions and Price Ceilings as to Their

question 382

Multiple Choice

The difference between quantity restrictions and price ceilings as to their effect on the market is that

• A) only price ceilings make the market inefficient.
• B) only quantity restrictions make the market inefficient.
• C) while some consumers gain from price ceilings, no consumers gain from quantity restrictions.
• D) while price ceilings are efficient, quantity restrictions are not.

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Definitions:

Applied Voltage

The voltage that is applied across a component or circuit, initiating the flow of current.

Inductive VARs

In power systems, inductive VARs (Volt-Ampere Reactive) are reactive power components generated by inductive loads, contributing to the overall power factor but not to the actual work performed.

Power Factor

A dimensionless measure of how effectively electrical power is converted into useful work output, particularly the ratio of real power to apparent power in a circuit.

Capacitive VARs

Reactive power measured in Volt-Ampere Reactive (VAR) generated by capacitive loads, which can be used for power factor correction in electrical systems.