Supply, Demand

Chapter 6 Supply, Demand, and Government Policies MULTIPLE CHOICE 1.Price verifys ar a.used to prepare grocerys more(prenominal) efficient. b. commonly decreeed when policymakers recollect that the merchandise outlay of a rock-steady or assist is dirty to buyers or sellers. c.nearly unceasingly effective in eliminating inequities. d.established by firms with monopoly power. reply: b.usually enacted when policymakers believe that the merchandise price of a favourable or service is unfair to buyers or sellers. character reference: M clog: 2 2.Policymakers choose to enact price controls in a food commercialise because a.they believe the food tradeplaces takings to be unfair. b.enacting price controls will instantaneously increase tax revenue enhancement tax incomes. c.they are essential by law to purify market conditions. d.they believe that the market brass is inefficient and their actions will improve efficiency. ANSWER: a.they believe the markets outcome to be unfair. TYPE: M classify: 1 DIFFICULTY: 2 3.Policymakers are led to control prices because a.they opinion the markets outcome as inefficient. b.they view the markets outcome as unfair. c.all politicians love exercising their power. d.they are required to do so beneath the Employment come of 1946. ANSWER: b.they view the markets outcome as unfair.

TYPE: M component part: 1 DIFFICULTY: 2 4.Price controls a. incessantly formulate an equitable outcome. b.always produce an efficient outcome. c.can generate inequities of their own. d.produce revenue for the government. ANSWER: c.can generate inequities of their own. TYPE: M SECTION: 1 DIFFICULTY: 2 5.Which of the following is a reason policymakers put graduate taxes? a.to attempt to make markets more efficient b.to influence market outcomes c.to jut revenue for public use d.All of the preceding(prenominal) are correct. e. two b and c are correct. ANSWER: e. Both b and c are...If you want to get a full essay, effect it on our website: Orderessay

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