69) Laws used to keep market prices from falling are called

rationing and subsidies.

price ceilings.

price floors.

allocations and redemptions.

71) Market failure occurs when the market does not provide the socially optimal amount of goods and services.

True

False

73) If a price floor is set below the market price, it is

binding.

efficient.

inefficient.

nonbinding.

75) A price floor is _____ if it is set _____ the market price.

efficient; below

binding; below

efficient; above

binding; above