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:

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both employer and employee.

Benefits Packages

A collection of non-wage compensations such as medical insurance, pensions, and vacation time offered to employees.

Competitive Labor Market

A market in which there are many employers seeking to hire and many workers seeking employment, leading to competition among employers for employees and vice versa.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who lose their jobs and meet certain requirements.