The Government Might Impose a Price Ceiling If _____ in a Market

question 172

Multiple Choice

The government might impose a price ceiling if _____ in a market can make a strong moral or political argument for _____ prices.

• A)consumers;lower
• B)producers;lower
• C)consumers;higher
• D)producers;higher

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Definitions:

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.

Marginal Productivity

The additional output that results from using one more unit of a factor of production, holding other factors constant.

Official Government Definition

A formal and authoritative explanation or description of a term or policy provided by a governmental body.

Biological Needs

Fundamental requirements that sustain the life of an organism, such as food, water, and shelter.