1. When airlines were regulated, many offered wider seats and fancy meals. This is an example of:

a. quality waste.

b. consumer surplus.

c. producer surplus.

d. lost gains from trade.

2. Some economists compare the destructiveness of rent control to that of aerial bombardment because it causes:

a. landlords to neglect their buildings, allowing them to deteriorate over time.

b. high search costs in apartment hunting.

c. there to be unexploited gains from trade.

d. apartments to go to renters who do not have the highest-valued use of the apartments.

3. A price ceiling is a(n):

a. legally established maximum price that can be charged for a good.

b. illegally established minimum price that can be charged for a good.

c. legally established minimum price that can be charged for a good.

d. illegally established maximum price that can be charged for a good.