When policymakers set controls on prices, they obscure the signals that guide the allocation of society’s resources. Further, price controls often hurt those they are trying to help. Select one: a.False

When policymakers set controls on prices, they obscure the signals that guide the allocation of society’s resources. Further, price controls often hurt those they are trying to help. Select one: a.False

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section6.1: Controls On Prices

Problem 1QQ

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Concept explainers

Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.

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When policymakers set controls on prices, they obscure the signals that guide the allocation of society’s resources. Further, price controls often hurt those they are trying to help.

Select one:

a.False

b.True

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