Crash Course Economics #20

A price ______ is when the government sets a maximum price for a specific good or service.

A price ______ is when a law sets a minimum price in a specific market.

A price floor keeps the price _____.

• high

• low

A price ceiling keeps the price _____.

• low

• high

A subsidy is a government _____ given to individuals, organizations, or businesses designed to offset specific costs to advance a specific public goal.

• subsidy

• tax

• loan

• credit

85% of economists think the government should eliminate agricultural subsidies.

• True

• False

No farm subsidy money is allowed to pay for crop insurance

• False

• True