Price controls are usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose a firm doubles its employment of all inputs in the long run. If this action more than doubles the amount of output produced, then this firm is experiencing
a. increasing returns to scale. b. diminishing marginal returns. c. technological progress. d. positive marginal revenue.
The owner or owners control the day-to-day activities of which of the following types of business?
A) corporations and partnerships B) sole proprietorships and corporations C) partnerships and sole proprietorships D) only corporations
In August 2011, Standard & Poor's (S&P) changed its rating on U.S. Treasury bonds from "AAA" to "AA+" based on the state of the federal government's budget deficit. This was the ________ a rating agency had given Treasury bonds less than a rating of
"AAA." A) first time ever B) second time since the year 2000 C) first time since the Great Depression D) fifth time in history
There is an increase in aggregate demand, and firms do not have sufficient capital and labor to support an output increase. In this case, inventory stocks will
A. continue to increase, and there will be a large increase in the price level. B. continue to fall, and the price level will fall. C. continue to fall, and there will be a large increase in the price level. D. remain unchanged, and the price level will remain unchanged.