When Government Imposes Price Controls in a Market

question 177

Multiple Choice

When government imposes price controls in a market,

• A) non-price factors become more important in the rationing of the good.
• B) efficiency in the market is enhanced.
• C) shortages and surpluses are eliminated.
• D) buyers and sellers both become better off.

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Definitions:

Sensitization

An increase in behavioral response after exposure to a stimulus.

Higher-order Conditioning

A form of conditioning in which a stimulus is paired with a previously conditioned stimulus, leading to the acquisition of the same conditioned response without being directly paired with the unconditioned stimulus.

Modeling

The process of learning behaviors by observing and imitating others, a key concept in social learning theory.

Dishabituation

The renewal of a response, previously habituated, due to the presentation of a novel stimulus.