If the Intended Aim of the Price Floor Set in the Graph

question 133

Multiple Choice

If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:

• A) the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
• B) the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
• C) the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices.
• D) there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.

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Definitions:

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The ability to perform tasks and solve problems due to knowledge, practice, and aptitude.

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The internal drive or factors that prompt individuals to take action towards achieving a goal, influenced by a combination of intrinsic and extrinsic factors.

Competencies

A set of defined skills, knowledge, abilities, and attributes that contribute to high performance and are needed to achieve specific tasks or jobs.

Aptitudes

Natural abilities or talents that make it easier for individuals to learn certain skills or perform certain tasks.