Price Controls, Subsidies, and the Risks of Good Intentions: Crash Course Economics

The video discusses the unintended consequences of government interventions like price controls and subsidies. It explains how price ceilings can lead to shortages and price floors to surpluses, using examples like gas prices and corn. The video also covers agricultural subsidies, highlighting their historical context and current implications. It concludes with a discussion on subsidies in renewable energy, emphasizing that while markets generally work efficiently, government intervention may be necessary when markets fail.

What is deadweight loss and how is it related to price ceilings and floors?

In what situations might government subsidies be considered appropriate?

What are the potential consequences of imposing price controls in a market economy?

How do government policies like price ceilings and floors fail to improve market efficiency?