The Presence of a Price Control in a Market for a Good

question 130

Multiple Choice

The presence of a price control in a market for a good or service usually is an indication that

• A)an insufficient quantity of the good or service was being produced in that market to meet the public's need.
• B)the usual forces of supply and demand were not able to establish an equilibrium price in that market.
• C)policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
• D)policymakers correctly believed that price controls would generate no inequities of their own once imposed.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets, including real estate, intellectual property, and personal possessions.

Private Owners

Individuals or entities that legally possess property or businesses and hold exclusive rights over their use and distribution.

Selfish Ends

pertains to actions or goals pursued for personal gain or advantages, often disregarding the welfare of others.

Property Rights

Legal rights over the use, control, and transfer of property, including intellectual and physical goods.