6.2 Impact of Government Intervention Flashcards by Sam Heron

Q

Arguments for a price cap?

A

Protects from over-charging
Progressive
Productive efficiency
Can be temporary

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Q

Arguments against a price cap?

A

Lower incentive for new firms
Less investment

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Q

Judging effectiveness of regulation?

A

1) Prices for consumers
2) Jobs
3) Environmental indicators
4) Investment

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