When the Government Restricts the Quantity of a Good to Zero

question 78

Multiple Choice

When the government restricts the quantity of a good to zero

• A) an underground market develops.
• B) there is none of the good available anywhere.
• C) people's demand for the product evaporates.
• D) producers stop all production.

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Definitions:

Importance

The state or fact of being of great significance or value.

Productive Efficiency

A situation where an economy or a production process is not able to produce more of one good without reducing the production of another good, operating on its production possibilities frontier.

Economy

A system of production, distribution, and consumption of goods and services within a particular geographic area.

U.S. Economy

The economic system of the United States, characterized by a combination of free-market and planned economic activities, and is one of the largest economies globally.