- This topic has 7 replies, 6 voices, and was last updated Oct-184:46 am by
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Up8
Which of the following statements relating to obstacles to efficient allocation of resources is/are most likely incorrect?
I: Price ceilings set below the equilibrium price lead to shortages, bribery, poor quality and black marketeering.
II: Subsidies decrease equilibrium quantities and lead to dead weight losses from overproduction.
III: Production quotas decrease equilibrium quantities and lead to dead weight losses from underproduction.- Both statements I and II
- Both statements I and III
- Only statement II
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Up5
incorrect :/ I checked the correct ones uhhh
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Up4
Correct Answer: C
Subsidies result in ‘increase’ in equilibrium quantities and lead to dead-weight losses from overproduction. Statement II is incorrect. The remaining two statements are correct.
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Up2
@jmsatchwell‌ hopefully this helps you just that little extra to get it right in the actual exam!
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Up1
Woo! I got it right.
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Up1
Ugh I hate when I check the wrong box. That’s gonna trip me up more than anything in December.
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Up0
I had that same problem taking exams @jmsatchwell‌ ! If I had time at the end of the exam I would always double check to make my answers matched what I meant to put. Most people probably don’t need to do that, but for me it was well worth the time!
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Up0
Uggh … I again didn’t read the word incorrect … Checked correct ones
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