Information Express Is a Privately Owned and Operated Organization That

question 59

Multiple Choice

Information Express is a privately owned and operated organization that collects credit information on business firms. After the organization analyzes and evaluates the data, it makes credit ratings available to client companies for a fee. Information Express is a

• A) credit collection agency.
• B) trade-credit agency.
• C) financial credit agency.
• D) credit bureau.

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Definitions:

Price Floor

A government- or authority-imposed price control or limit on how low a price can be charged for a product.

Effective Price Floor

A government-imposed price control above the equilibrium price, intended to ensure producers receive a minimum price higher than what the market would naturally dictate.

Surplus

A scenario in which the supply of a particular good or service surpasses its demand at the existing market price.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market.