Homework Help is Here – Start Your Trial Now!
Business
Economics
Government attempts to lower, raise, or simply stabilize prices can: shift the distribution of surplus. create unintended side effects. reduce efficiency of a market. All of these are true.

Government attempts to lower, raise, or simply stabilize prices can: shift the distribution of surplus. create unintended side effects. reduce efficiency of a market. All of these are true.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Please help me find the answer to the following. I got the answer wrong.

**Question:** Government attempts to lower, raise, or simply stabilize prices can: - ○ shift the distribution of surplus. - ● create unintended side effects. - ○ reduce efficiency of a market. - ○ All of these are true. **Explanation:** This question explores the economic effects of government intervention in pricing. Each option outlines a potential consequence: - **"Shift the distribution of surplus"**: This refers to how such interventions can alter the distribution of economic benefits between consumers and producers. - **"Create unintended side effects"**: Interventions might lead to outcomes not anticipated by policymakers, such as market distortions or imbalances. - **"Reduce efficiency of a market"**: Government actions may lead to inefficiencies, such as reduced competition or misallocation of resources. - **"All of these are true"**: Indicates that all the mentioned effects can happen simultaneously due to government price interventions.
Transcribed Image Text:**Question:** Government attempts to lower, raise, or simply stabilize prices can: - ○ shift the distribution of surplus. - ● create unintended side effects. - ○ reduce efficiency of a market. - ○ All of these are true. **Explanation:** This question explores the economic effects of government intervention in pricing. Each option outlines a potential consequence: - **"Shift the distribution of surplus"**: This refers to how such interventions can alter the distribution of economic benefits between consumers and producers. - **"Create unintended side effects"**: Interventions might lead to outcomes not anticipated by policymakers, such as market distortions or imbalances. - **"Reduce efficiency of a market"**: Government actions may lead to inefficiencies, such as reduced competition or misallocation of resources. - **"All of these are true"**: Indicates that all the mentioned effects can happen simultaneously due to government price interventions.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Inflation and Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS