29 Which of the following is most likely to happen when the government controls which firms can sell a particular good in a market? There will be an efficient allocation of scarce resources in the economy. There will be an increase in rent-seeking and lobbying activities as firms attempt to influence the outcomes of the political process. There will be an increase in the level of production of the good. There will be an increase in consumer surplus in the economy.
29 Which of the following is most likely to happen when the government controls which firms can sell a particular good in a market? There will be an efficient allocation of scarce resources in the economy. There will be an increase in rent-seeking and lobbying activities as firms attempt to influence the outcomes of the political process. There will be an increase in the level of production of the good. There will be an increase in consumer surplus in the economy.
Chapter4: Prices: Free, Controlled, And Relative
Section: Chapter Questions
Problem 4WNG
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29
Which of the following is most likely to happen when the government controls which firms can sell a particular good in a market?
There will be an efficient allocation of scarce resources in the economy.
There will be an increase in rent-seeking and lobbying activities as firms attempt to influence the outcomes of the political process.
There will be an increase in the level of production of the good.
There will be an increase in consumer surplus in the economy.
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