1.4.1 Government Intervention in Markets Flashcards
1
Q
Maximum price
A
It is set by the government to encourage the consumption or production of a good. It ensures the good is not too expensive to consume or produce.
2
Q
Minimum price
A
It is set by the government to discourage the consumption or production of a good. It ensures the price of the good never falls below a certain price.
3
Q
Government failure
A
Misallocation of resources arising from government intervention.
