When Government Imposes a Price Ceiling or a Price Floor

question 210

Multiple Choice

When government imposes a price ceiling or a price floor on a market,

• A)price no longer serves as a rationing device.
• B)efficiency in the market is enhanced.
• C)shortages and surpluses are eliminated.
• D)both buyers and sellers become better off.

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Definitions:

Communism

A political and economic ideology advocating for a classless society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Knights of Labor

A significant American labor organization in the late 19th century, advocating for the rights of workers, including shorter workdays and an end to child labor.

Terrence V. Powderly

A leader of the Knights of Labor, a key labor organization in the United States during the late 19th century, which aimed to promote workers' rights and social reform.

African-Americans

An ethnic or racial group in the U.S. that has heritage from any of the African black racial groups.