(Figure: Determining Surplus and Loss) in the Graph, If the Government

question 232

Multiple Choice

(Figure: Determining Surplus and Loss) In the graph, if the government sets a price of $5, this is an example of an:

• A) effective price ceiling.
• B) effective price floor.
• C) efficient price ceiling.
• D) efficient price floor.

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Definitions:

Oligopoly

Market structure in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors.

Planned Economy

Economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms.

Mixed Market Economy

features both private and public enterprise, blending elements of capitalist and socialist economic systems.

Private Enterprise System

Economic system that rewards firms for their ability to identify and serve the needs and demands of customers.