What will be consequences of such a policy in the ruritanian

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Questions:

(a). Distinguish between a socialist economy, an interventionist economy and an unhampered market economy.

(b). Explain the differences between a rights-based analysis of interventionism and a means-ends analysis of interventionisrn. Which type of approach do Mises and Hayek adopt in their analysis of interventionism?

(c). A gallon of milk in Emit?nja currently sells for $5. Concerned with the fact that many poor households are unable to afford adequate amounts of milk, the President of BHEiEIJi? has decided to limit the price of a gallon of milk to $3. What will be the consequences of such a policy in the Ruritanian economy? Based on your analysis of these consequences, do you believe that the price control will achieve its stated objectives?

(d). Does the price control affect a producer with highly specific factors of production differently as compared to a producer with relatively non-speci?c factors of production? If yes, provide an explanation of these differences.

Reference no: EM133341649

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