If the Government Fixes the Price of Good X Above

question 19

Multiple Choice

If the government fixes the price of good X above its free-market equilibrium level,we should expect

• A)a surplus of good X to occur.
• B)a shortage of good X to occur.
• C)an excess demand for good X.
• D)a black market to arise for good X.
• E)a new free-market equilibrium price to be established.

Comprehend the implication of unintended consequences in economic policies.

Evaluate economic definitions and statements for their validity and applicability.

Recognize the importance of opportunity cost in economic decision-making.

Grasp the foundational aspects of economic theory and the economic way of thinking.

---

Definitions:

Common Formative Experiences

Shared experiences that contribute significantly to the socio-emotional development and shaping of young people's identities.

Generation

A group of individuals born and living about the same time, sharing similar cultural experiences and societal milestones.

Conflict Theorist

A social theorist who focuses on the inherent conflicts of interest between different social groups and uses this lens to analyze societal dynamics and changes.

Hidden Curriculum

The implicit lessons, values, and perspectives that students learn in school, which are not part of the formal curriculum.