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.

---

Definitions:

Opportunity Cost

The opportunity cost is the value of the best alternative forgone when a decision is made to take a specific action, representing the trade-offs inherent in every decision.

Regions

Geographical areas defined by specific characteristics, boundaries, or features that set them apart from other areas.

Misallocation

Inefficient distribution or use of resources, often resulting in reduced economic efficiency or productivity.

Improved Quality

Enhancements or upgrades to the standards of products, services, or processes to exceed previous benchmarks.