According to the textbook, government price controls fail because:
A. bureaucrats lack accurate market data.
B. firms ignore the price controls.
C. legislation cannot alter basic economic incentives.
D. they are not enforced by government.
Answer: C
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Give three reasons why the U.S. economy is more stable since 1950
What will be an ideal response?
There is evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies, especially for the United States
Indicate whether the statement is true or false
Deadweight loss measures the loss in society's welfare that occurs because a monopolist does not produce the socially efficient level of output
a. True b. False Indicate whether the statement is true or false
If the required reserve ratio decreases, the:
A. money multiplier increases. B. money multiplier decreases. C. amount of excess reserves the bank has decreases. D. money multiplier stays the same.