deck_43346 Flashcards
(6 cards)
2
Q
When does one achieve efficiency?
A
when an economy gets the most out of its scarce resources
3
Q
Who makes price controls?
A
government
4
Q
What happens when the economy fails to allocate resources efficiently on its own?
A
it fails (Market failure)
5
Q
What is not always a solution?
A
government
6
Q
Does the market always distribute income fairly?
A
no?
7
Q
What effects do price controls have on the market system?
A
bad
