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:

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom, including the private sector being the majority of the economy.

Annual Rate

A term often used in finance to describe the interest rate over the period of one year.

Economic Growth

is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured by GDP.

1933-1940

A specific time period noted for significant global and political events, including the depths of the Great Depression and the lead-up to World War II.