Economists Are Reluctant to State That Price Controls Are Desirable

question 33

Multiple Choice

Economists are reluctant to state that price controls are desirable or undesirable because

• A)it is impossible to evaluate the impact on quantity demanded and quantity supplied as a result of price controls.
• B)whether the gains from the winners exceed the losses from the losers is not strictly an economic question.
• C)sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency.
• D)economists are reluctant to conduct positive analysis of price controls.

Understand and calculate key financial ratios including accounts receivable turnover, and distinguish their categories (liquidity, profitability, solvency).

Comprehend the concept of percentage analysis within financial statements.

Interpret future income levels and understand factors influencing these predictions.

Analyze and comprehend the relationship between equity and debt, and its implications for creditors and the company’s financial health.

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Definitions:

Credit Terms

The conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the timeframe of the loan.

Merchandise

Goods or products that are bought, sold, or traded in the course of business operations.

Payment

The transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a contractual obligation.

Discount

denotes a reduction in the price of goods or services typically offered for promotional reasons or to certain groups of customers.