With Reference to the Graph Above, If the Intended Aim

question 67

Multiple Choice

With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would conclude:

• A) the policy was effective, since surplus gained by consumers through lower prices is greater than the surplus they lost through deadweight loss.
• B) the policy was ineffective, since surplus gained by consumers through lower prices is less than the surplus they lost through deadweight loss.
• C) the policy was effective, since surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices.
• D) the policy was ineffective, since the amount of deadweight loss is greater than the surplus gained by consumers from lower prices.

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Definitions:

Spatial Coordinate

A set of values that determine the precise position of a point or object in a space.

Explicit Memory

A form of enduring memory that entails the deliberate recall of facts, past events, and ideas.

Entorhinal Cortex

The entorhinal cortex is a region of the brain located in the medial temporal lobe, playing a critical role in memory, navigation, and the processing of time and space.

Perirhinal Cortex

A region of the brain within the medial temporal lobe associated with memory and recognition of objects.