Those Who Make Economic Policy Concerning Price Controls Often Do

question 108

Multiple Choice

Those who make economic policy concerning price controls often do so in order to:

• A)establish a more equitable result based on normative judgements.
• B)raise revenues to support the activities of government.
• C)change the facts on which economic theory is built.
• D)do all of the above.

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Definitions:

Market Price

The present cost for purchasing or selling an asset or service within a specific market.

Minimum-Cost Output

The level of production at which a firm can produce goods at the lowest possible average total cost.

Profit-Maximizing Quantity

The quantity of output at which a firm's profit is at its maximum, where marginal cost equals marginal revenue.

Market Price

The price at which a product or service is traded in the open market.