With Respect to Some Commodity,X,if Government Objectives Are to (1)restrict

question 22

Multiple Choice

With respect to some commodity,X,if government objectives are to (1) restrict production and (2) keep prices down to protect consumers,then legislated price ceilings will

• A)only have an effect on commodities at the international level.
• B)satisfy both goals but only if a black market develops.
• C)satisfy both goals as long as a black market does not develop.
• D)satisfy only the second goal if a black market develops.
• E)be a dismal failure as neither goal can ever be achieved with price ceilings.

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Definitions:

Controlling Cost

The process of monitoring and managing expenses to stay within budget and improve efficiency and profitability.

Labor

A measure of the work done by human beings.

Transportation Method

A mathematical optimization technique used for finding the most cost-efficient plan for distributing products from several suppliers to several consumers.

Aggregate Planning

A process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.