Which of the following is not an example of a price ceiling?
a. The Chinese government sets the price of housing in China below equilibrium.
b. The government of the former Soviet Union sets the price on food below those prevailing in the free market.
c. In the 1970s, the Nixon administration imposed wage and price controls, thereby keeping wages and prices from rising.
d. In the late 1970s, the U.S. government required gasoline to be sold at a price per gallon that was below what would have prevailed in a free market.
e. The U.S. government requires that sugar be sold at a price that exceeds the world price of sugar.
e
You might also like to view...
If, after careful analysis, an economist concludes that there has been a market failure, which of the following possible corrective actions might the economist favor? Why?
a. prohibiting the activity b. charging fees for continuing the activity c. requiring that the public be informed of the activity d. government purchase of the item for the public
The size of the underground economy is probably large when:
A. taxes are low. B. the cost of doing business legally is low. C. bribes are often necessary to cut through bureaucratic red tape. D. All of these statements are true.
Suppose that a state installs a toll booth on a highway and requires drivers to pay $1.00 before entering the highway. Installation of the toll booth changes:
A. a nonexcludable good into an excludable good. B. a nonrival good into a rival good. C. a public good into a private good. D. a nonrival good into a nonexcludable good.
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: Between 1930 and 1935, millions of U.S. farm families lost their farms, and less output was produced by the remaining farms. (See Figure 8.6.)
A. A. B. B. C. C. D. D.