Summary of the Article

question 18

Multiple Choice

Summary of the article:
Zimbabwe Abandons Price Controls, Promotes Currency Trading
By Brian Latham
Bloomberg
January 29, 2009
In response to continued recession and a currency which had become virtually worthless, Zimbabweʹs acting
finance minister Patrick Chinamasa announced in January 2009 that the government would abandon all price
controls and allow Zimbabweans to use any nationʹs currency to conduct business.
In 2009, Zimbabwe entered its eleventh year of recession and its inflation rate, estimated to be 231 million
percent in July 2008, was the highest in the world. Due to the inflation, most businesses stopped conducting
business using the Zimbabwean dollar, and the government announced that government employees would
start being paid with vouchers which could be exchanged for foreign currency.
-The Application addresses the economic concept of

• A)chain indexes.
• B)hyperinflation.
• C)cost-of-living adjustments.
• D)deflation.

---

Definitions:

Property Rights

Legal rights over the use, control, and transfer of property, which can include both physical objects and intellectual property.

Employer

An individual or organization that hires and pays people to work for them, providing wages or salaries in exchange for the employees' labor.

Customers

Individuals or entities that purchase goods or services from a business.

U.S. Labor Law

Legislation and legal standards in the United States that govern the relationship between employers, employees, and labor unions.