If the Intended Aim of the Price Floor Set in the Graph

question 55

Multiple Choice

If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers,then positive analysis would have us consider:

• A) whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
• B) whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
• C) whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price.
• D) whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place.

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Definitions:

Extrinsic Qualities

Characteristics or attributes that are not inherent or essential but are imposed from the outside or by external factors.

Intrinsic Qualities

The inherent characteristics, values, or virtues of a person or thing that are not dependent on external factors.

Intrinsic Motivation

Refers to the internal drive to undertake an activity for its own sake, due to interest, enjoyment, or personal satisfaction.

Quantity Of Performance

A measure of the amount of work completed within a given time frame, often used to gauge productivity.