Which of the Following Is Not a Result of Government

question 72

Multiple Choice

Which of the following is not a result of government price controls?

• A)Some people win and some people lose.
• B)Price controls benefit poor consumers but harm producers and wealthy consumers.
• C)Price controls decrease economic efficiency.
• D)A deadweight loss will occur.

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Definitions:

X-inefficiency

The difference between efficient behaviors of businesses in a competitive market and their actual behaviors due to lack of competitive pressure.

Decreasing-cost Industry

An industry in which the costs of production decrease as the industry grows and output increases.

Decreasing-cost Industry

An industry in which the costs of production per unit decrease as the industry grows and output increases.

Long-run Equilibrium

A state in which all factors of production and outputs are adjusted so that prices, supply, and demand are stable over time.