Price Controls Are Usually Enacted

question 135

Multiple Choice

Price controls are usually enacted

• A)as a means of raising revenue for public purposes.
• B)when policymakers believe that the market price of a good or service is unfair to buyers or sellers.
• C)when policymakers tax a good.
• D)All of the above are correct.

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Definitions:

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced inventory over a given period.

Fixed-Asset Turnover

A financial ratio that measures a company's ability to generate sales from its fixed assets.

ROA

Return on Assets; a financial ratio indicating how profitable a company is relative to its total assets.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.