Price Controls May Be Thought of as

question 210

Multiple Choice

Price controls may be thought of as

• A) a restraint on the rationing function of prices.
• B) useful tools that promote production.
• C) necessary in market economies.
• D) the freeing-up of free market forces.

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Definitions:

Widgets

A generic term often used to represent a hypothetical product in economics and business discussions.

Opportunity Cost

The cost of missing out on the second-best option while choosing between two mutually exclusive options in a decision-making process.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Average Total Cost

The complete expense of manufacturing (encompassing both fixed and variable expenditures) divided by the overall amount of goods produced.