In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Monetary freedom refers to:
A)the ability to create and operate an enterprise easily.
B)the absence of tariff and non-tariff barriers that affect imports of goods.
C)the tax burden and overall tax revenue of the government.
D)price stability with an assessment of price control.
E)the free flow of foreign capital.

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Monetary freedom refers to:
A)the ability to create and operate an enterprise easily. 
B)the absence of tariff and non-tariff barriers that affect imports of goods. 
C)the tax burden and overall tax revenue of the government. 
D)price stability with an assessment of price control. 
E)the free flow of foreign capital.

Quizplus · Accepted Answer

Monetary freedom combines price stability with an assessment of price controls. It measures the stability of a country's currency and the extent of government intervention in the market through direct control of prices.

In the Following Figure, the First Panel Shows a Market