Price ceilings are designed to
A. create surpluses where none existed before.
B. establish a maximum allowable price.
C. allow free market prices to be achieved.
D. None of these.
Answer: B
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What would be an example of a government good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. B) Rhianna gets a haircut. C) Jake buys an iPhone. D) Donald Trump purchases furniture for his office. E) The local driver's license office purchases a new digital camera and printer.
If losses are incurred in a competitive industry, then over the long-run we can expect a greater quantity supplied, because market price will rise
a. True b. False Indicate whether the statement is true or false
Sometimes spreading has an advantage over hedging to lower risk because:
A. spreading increases expected returns, hedging does not. B. it is cheaper to spread than hedge. C. spreading does not affect expected returns. D. it can be difficult to find assets that move predictably in opposite directions.
Which of the following treaties/agreements would be associated with creating a free trade area for the European Union?
A) Treaty of Rome B) Single Europe Treaty C) Delors Agreement D) Schengen Agreement