1. President Richard Nixon, 1970s, 90-day price and wage freeze to fight inflation. Milton Friedman, 'One of those plausible schemes with very pleasing commencement that have shameful conclusions'.
2. Price ceiling - Maximum price for a specific good or service
3. Price floor - Minimum price in a specific market. Keeping price artificially high and not allowing price to fall to equilibrium.
4. In terms of helping consumers and producers, price controls are counter-productive. However minimum wage is a better solution.
5. Economists generally agree that rent control results in reduced quantity and quality of housing that is available.
6. A subsidy is a government payment given to individuals, organizations or businesses to offset costs to advance a specific public goal.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.