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China plans price controls to curb inflation

Read the article China plans price controls to curb inflation and answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.


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Question 1

Define the following terms:

  1. inflation rate
  2. interest rates

Question 2

Using diagrams, as appropriate, illustrate the way in which price controls can be used to control food price rises in China.

Question 3

Analyse the impact on consumers of the imposition of price controls on food markets in China.

Question 4

Discuss the role likely effectiveness of price controls as a tool to reduce the level of inflation.