Chapter 6: Price Controls

Question 1

attempt to set prices through government control in the market

Answer 1

price controls

Question 2

legally established maximum price for a good or service

Answer 2

price ceiling

Question 3

illegal markets that arise when price controls are in place

Answer 3

black markets

Question 4

price ceiling that applies to the market for apartment rentals

Answer 4

rent control

Question 5

place a temporary ceiling on the prices that sellers can charge during times of emergency

Answer 5

price gouging laws

Question 6

legally established minimum price for a good or service

Answer 6

price floor

Question 7

the lowest hourly wage rate that firms may legally pay their workers

Answer 7

minimum wage

Question 8

price ceiling set above the equilibrium price

Answer 8

non-binding price ceiling

Question 9

price ceiling set below the equilibrium price

Answer 9

binding price ceiling

Question 10

price floor set below the equilibrium price

Answer 10

non-binding price floor

Question 11

price floor set above the equilibrium price

Answer 11

binding price floor