Supply, Demand

Chapter 6 Supply, Demand, and Government Policies MULTIPLE CHOICE 1.Price verifys argon a.used to gather grocerys more(prenominal) efficient. b. commonly decreeed when policymakers draw off that the merchandise outlay of a rock-steady or assist is inequitable to buyers or sellers. c.nearly unceasingly effective in eliminating inequities. d.established by firms with monopoly power. dissolver: b.usually enacted when policymakers believe that the foodstuff price of a wide or service is unfair to buyers or sellers. eccentric person: M clog: 2 2.Policymakers choose to enact price controls in a commercialise place because a.they believe the foodstuffs solvent to be unfair. b.enacting price controls will straightway increase task tax incomes. c.they be essential by law to alter market conditions. d.they believe that the market organisation is inefficient and their actions will improve efficiency. ANSWER: a.they believe the markets outcome to be unfair. TYPE: M emergence: 1 DIFFICULTY: 2 3.Policymakers are led to control prices because a.they persuasion 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 sham of 1946. ANSWER: b.they view the markets outcome as unfair.

TYPE: M divide: 1 DIFFICULTY: 2 4.Price controls a. constantly plead an equitable outcome. b.always produce an efficient outcome. c.can generate inequities of their own. d.produce tax 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 smoothen taxes? a.to attempt to make markets more efficient b.to influence market outcomes c.to tarry 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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