When the Government Sets Conditions on Companies Seeking to Sell

question 61

Multiple Choice

When the government sets conditions on companies seeking to sell goods or services to
Government agencies it is called

• A)fiscal policy.
• B)monetary policy.
• C)the contracting power.
• D)budgetary policy.

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Definitions:

Quota

A specific limit or target for production, sales, or other measurable factors, often set by governments or organizations.

Licensing Suppliers

The process by which a business grants other businesses permission to manufacture its product or provide its service in exchange for a fee or royalty.

Price Floor

A government-imposed minimum price that can be charged for a commodity, above what would be set by market forces, to ensure that producers receive a minimum income.

Equilibrium Price

The price in the market where the amount of products offered matches the amount of products consumers want to buy.