Many Observers Feel That Price Controls Imposed During World War

question 65

Multiple Choice

Many observers feel that price controls imposed during World War II were generally more effective than those imposed in the 1970s because

• A) there was more effective government enforcement.
• B) the price ceilings were set below market equilibrium prices.
• C) those imposed during the war tended to be more flexible than those in the 1970s.
• D) they had the moral support of U.S. consumers.
• E) the price freezes of the 1970s were short-run rather than long-run controls.

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Definitions:

Equity Comparisons

The process of comparing one's own ratio of contributions and rewards with the ratios of others to gauge fairness.

Goal-setting Theory

A motivation theory which posits that setting specific and challenging goals, along with appropriate feedback, enhances performance.

Task Goals

Specific objectives or targets set for tasks or activities, focusing on the completion and achievement of individual assignments.

Properly Set

Correctly established or arranged according to specified guidelines or principles.