When government imposes a price ceiling or a price floor on a market,
a. price no longer serves as a rationing device.
b. efficiency in the market is enhanced.
c. shortages and surpluses are eliminated.
d. both buyers and sellers become better off.
a
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Explain the supply and demand of products, factors of production, and the payments for the products and factors of production as described in the circular flow diagram
What will be an ideal response?
For a resource to be able to generate temporary competitive advantage over rivals, it must be
a. Valuable b. Rare c. Valuable and rare d. Not valuable but rare
An annually budgeted budget can only be met if automatic stabilizers are effective
a. True b. False Indicate whether the statement is true or false
The marginal propensity to save (MPS) is computed as the change in:
a. savings divided by the change in saving. b. savings divided by the change in income. c. saving divided by the change in GDP. d. None of these.