Economists Generally Agree That Price Controls in the U

question 24

Multiple Choice

Economists generally agree that price controls in the U.S. would

• A)diminish prices to consumers.
• B)increase the motivation to invent new drugs.
• C)increase profits to drug companies.
• D)increase the motivation to invent new drugs and increase profits to drug companies.

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Definitions:

Labor Force

The cumulative count of individuals who either have a job or are seeking work actively.

Business Cycle Theories

Various economic theories that attempt to explain the causes and dynamics of the business cycle, including expansions and contractions in economic activity.

Endogenous

Originating from within an economic model or system; refers to factors that are explained by the internal workings of the model.

Exogenous

Factors or variables that are external to the economic model and not determined within the model itself.