Economists Studying the Effect of the China Shock on the U.S.economy

question 139

Multiple Choice

Economists studying the effect of the China shock on the U.S.economy point out that the firms most hurt by Chinese imports have been

• A)evenly distributed across the United States.
• B)almost exclusively located in the Northeast.
• C)concentrated in certain states, particularly in the Midwest and Southeast.
• D)located primarily along the Pacific coast.

---

Definitions:

Price Controls

Price controls are government-imposed limits on the prices charged for goods and services, aimed to protect consumers by preventing prices from reaching levels deemed too high or too low.

Economic Efficiency

A situation in which all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Equilibrium Price

The market condition price point where supply and demand for a product or service balance each other, leading to no inherent tendency for change.

Price Floors

Legally established minimum prices for goods or services, intended to ensure they cannot be sold below a certain price.