Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is
A) just as efficient.
B) less efficient because the time spent waiting in line imposes an opportunity cost on the buyer that does not generate revenue for the seller.
C) more efficient since waiting in line reduces the transaction costs of purchasing goods.
D) more efficient since waiting in line reduces the cost of the goods to the consumer.

Question

Quizplus · Accepted Answer

Waiting in line imposes an opportunity cost on the buyer, as the time spent could have been used for other productive activities, and it does not generate revenue for the seller, making it less efficient than price rationing.

Because of Price Controls in the Former Soviet Union, People