Price Controls

question 7

Multiple Choice

Price controls

• A)are always popular with consumers because they lower prices.
• B)create shortages.
• C)increase producer surplus because firms can now sell a greater quantity of a good at a lower price.
• D)are necessary to preserve equity.

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Definitions:

Single-Entry Accounting

An accounting system in which the flow of income and expenses is recorded in a running log, basically like a checkbook.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period.

Balance Sheet

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Monthly Statements

Monthly statements are periodic financial reports issued by banks, credit card companies, and other institutions showing transactions, balances, and other financial activities over a month.