When a government imposes price controls, the result is that
A) the rationing function of prices is not allowed to function freely.
B) the price system operates more efficiently.
C) all trades are as mutually beneficial to each party as possible.
D) scarcity usually disappears.
A
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What is most accurate about the United States' trading patterns between 1850 and 1900?
a. The US exported more finished manufacturers in 1850 than it did in 1900. b. Raw materials accounted for a greater share of US imports in 1850 than they did in 1900. c. Manufactured and raw foodstuffs accounted for about 75% of exports in both 1850 and 1900. d. In 1850, the US's largest export was raw materials and its larges import was finished manufacturers.
The price of peanuts drops from 50 cents to 25 cents per pound. How and why might an individual and a group of 1,000 people respond to this price drop very differently?
What will be an ideal response?
When the MPC is 0.8 and t is 0.4, then the government spending multiplier is about -1.54.
Answer the following statement true (T) or false (F)
The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944:
a. has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment. b. has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression. c. has been acknowledged as a success in Keynesian policies, with the caveat that inflation was only averted through price controls. d. All of the above are correct.