ECONOMICS
PRICE CEILINGS AND FLOORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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products would go to those who valued them most.
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workers would have an incentive to get jobs.
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manufacturers could make a profit.
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everyone could get essential scarce goods.
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Detailed explanation-1: -Supplies such as gasoline, butter, sugar and canned milk were rationed because they needed to be diverted to the war effort. War also disrupted trade, limiting the availability of some goods.
Detailed explanation-2: -Rationing provides governments with a way to constrain demand, regulate supply, and cap prices, but it does not totally neutralize the laws of supply and demand. Black markets often spring up when rationing is in effect. These allow people to trade rationed goods they may not want for ones they do.
Detailed explanation-3: -Rationing was a means of ensuring the fair distribution of food and commodities when they were scarce. It began after the start of WW2 with petrol and later included other goods such as butter, sugar and bacon. Eventually, most foods were covered by the rationing system with the exception of fruit and vegetables.
Detailed explanation-4: -rationing, government policy consisting of the planned and restrictive allocation of scarce resources and consumer goods, usually practiced during times of war, famine, or some other national emergency.