List some of the problems that may arise when prices are controlled.
What will be an ideal response?
Apart from the standard set of issues associated with price ceilings and floors, following are some of the problems arising out of price controls: Favoritism and corruptionUnenforceabilityAuxiliary restrictionsLimitation of volume of transactionsMisallocation of resources
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U.S. demand for tertiary labor increases when
(a) the wage rate rises. (b) urbanization proceeds. (c) demand for goods and services decreases. (d) price of output declines.
Which of the following will cause the production possibilities curve to shift inward?
A. An increase in knowledge. B. An increase in the working-age population. C. A technological advance. D. A decrease in the size of the labor force.
The following list contains items that are related to aggregate demand and/or aggregate supply.1)Government Spending 2)Consumer Expectations 3)Degree of Excess capacity 4)Personal Income Tax Rates 5)Productivity 6)National Income Abroad 7)Business Taxes 8)Domestic Resource Availability 9)Price of Imported Products 10)Profit Expectations on Investments Refer to the above list. Changes in which combination of factors best explain why the aggregate supply curve would shift?
A. 1 and 2 B. 7 and 8 C. 3 and 6 D. 2 and 10
The Motor Carrier Act of 1980 removed the government's restriction on:
A. entry into the trucking industry. B. the size of trucks used to transport goods and services. C. entry into the industry that produces delivery trucks. D. entry into parcel delivery.