When a Government Imposes Price Controls, the Result Is That

question 201

Multiple Choice

When a government imposes price controls, the result is that

• A) the rationing function of prices is not allowed to function freely.
• B) the price system operates more efficiently.
• C) all trades are as mutually beneficial to each party as possible.
• D) scarcity usually disappears.

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Definitions:

Psychological Test

A standardized instrument designed to measure aspects of an individual's mental abilities, behaviors, or personality.

Independent Variable

The factor in an experiment that is altered or adjusted by the experimenter to study its influence on the outcome variable.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable, used to determine cause-and-effect relationships.

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