Which of the following is the most correct statement about price controls?

a.Price controls tends to be hurt everyone equally.

b.Price controls never help those they are designed to help.

c.Price controls often hurt those they are designed to help

d.Price controls always hurt those they are designed to help

e.Price controls always help those they are designed to help.

A vertical supply curve signifies that:

a.an infinite quantity will be supplied at a given price

b.a change in price will change quantity supplied in the opposite direction

c.demand is fixed in the short run

d.a change in price will have no effect on quantity supplied

e.the relationship between price and quantity supplied is inverse

When a society cannot produce all the resources that people wish to have, it is called:

a.a trade-off

b.scarcity

c.efficiency

d.poverty

e.a market

Hotdogs are made by combining one bun with one sausage. American hotdog buns and sausages are a good example of:

a.positively sloped indifference curves

b.optimal consumption

c.perfect substitutes

d.perfect complements

e.crossing indifference curves

Other things being equal, if the price of a good falls, the consumer surplus:

a.decreases

b.may increase, decrease or remain unchanged

c.increases

d.is unchanged

e.is unknown

The main reason policymakers use price controls is because:

a.prices are often too high

b.they are better at coordinating economic activity than the free market

c.they believe that in some cases the market outcome is not fair

d.they need a reason to justify their jobs

e.market equilibrium is essential for fairness.