6 Questions
Which of the following is true about a controlled market?
Goods get their prices only by direction from the state
What is the intention of government intervention in setting ceiling prices on basic items in a controlled market?
To allow a reasonable margin of profit to entrepreneurs and to keep prices within an affordable range for individuals in the lower socio-economic group
What is a free market?
A market where the prices of goods are determined by the forces of supply and demand without any interference by the state or other agencies
What is a controlled market?
A market where the state or other agencies intervene in determining what goods are produced, to whom they may be distributed, or the prices at which they may be obtained
What is the intention of government intervention in setting ceiling prices on basic items in a controlled market?
To allow a reasonable margin of profit to entrepreneurs and to keep prices within an affordable range for individuals in the lower socio-economic group
What is a free market?
A market where there is no interference by the state or other agencies in influencing suppliers or consumers as to what and how much should be produced or consumed
Test your knowledge on controlled markets and government intervention with this quiz! Learn about the different forms of intervention and their effects on the economy. Explore the benefits and drawbacks of controlled markets and how they compare to free markets. Challenge yourself and see how much you know about this important economic concept.
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