In most economies, the government plays a role in the market system. Governments enforce the rules of the game, impose taxes, and may control prices through price ceilings or price supports. These actions necessarily may create shortages or surpluses. In most developed and interdependent economies, the necessity of the government's playing some role in the economy is disputed."¨"¨The author of the passage would probably agree that
A. economic surpluses are always good.
B. market shortages are a necessary evil.
C. higher prices strengthen the economy.
D. price ceilings add to the shortages.
E. surpluses are not usually created intentionally.
Market System
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