Price Controls Are Usually Enacted

question 434

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 detect inefficiencies in a market.
• D) All of the above are correct.

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Definitions:

F.O.B. Contract

A shipping agreement where "Free On Board" determines that the seller delivers goods on board a vessel designated by the buyer, transferring the risk from the seller to the buyer once the goods are onboard.

C.O.D. Contract

Contract of "Cash On Delivery" where payment for goods is made at the time of delivery rather than in advance.

Privity of Contract

A legal concept that restricts the parties who can sue or be sued under a contract to those who are a part of the contract agreement.

Consumer Transactions

Business dealings or trade between sellers and individuals who are purchasing for personal, family, or household use.