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.

---

Definitions:

Frictional Unemployment

Temporary unemployment existing in a job market due to time taken by workers to move between jobs, including new or re-entering workers.

Structural Unemployment

Unemployment arising from a persistent mismatch between the skills of workers and the requirements of jobs, often exacerbated by technology or market changes.

Frictional Unemployment

Temporary unemployment experienced by individuals transitioning between jobs, seasons, or moving to new locations.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded.