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:

Institutional Racism

The systemic distribution of resources, power, and opportunity in our society to the benefit of people who are white and the exclusion of people of color.

De Jure Segregation

Legal separation of groups of people based on law, such as racial segregation that's enforced by legislation.

De Facto Segregation

Racial segregation that occurs not by law, but as a result of voluntary associations and neighborhoods, along with other factors like economic or social conditions.

Disavow Prejudice

The act of denying or renouncing any prejudiced beliefs or attitudes one might hold.