A Minimum Price, Set by the Government, That Sellers May

question 79

Multiple Choice

A minimum price, set by the government, that sellers may charge for a good is known as

• A) a price floor.
• B) a price rationing mechanism.
• C) a price ceiling.
• D) a subsidy.

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Definitions:

Limited Liability

A legal structure that limits the personal financial risk for shareholders of a company to the amount they invested in the company.

Trade Deficits

An economic condition that occurs when a country imports more goods and services than it exports.

National Debt

The total amount of money that a country's government has borrowed, usually as a result of deficit spending.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in successive quarters.