A Possible Explanation for Government Price Controls Is That They

question 10

Multiple Choice

A possible explanation for government price controls is that they

• A)reflect the preferences of the consuming public.
• B)benefit society.
• C)benefit those with the greatest need.
• D)permit some firms with political power to benefit, at a cost to society.
• E)increase economic efficiency.

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Definitions:

Treasury Bonds

Long-term government debt securities with a fixed interest rate and maturity of more than ten years, issued by the U.S. Treasury.

Dow Jones Industrial Average (DJIA)

An index in the stock market tracking the performance of 30 major companies traded on U.S. stock exchanges.

Blue Chip Stocks

Shares in large, reputable companies known for their ability to operate profitably in good and bad times.

Stock Splits

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price of each share, aiming to make shares more affordable.