Which of the Following Statements Is True

question 62

Multiple Choice

Which of the following statements is true?

• A) Price ceilings set below the equilibrium price cause shortages.
• B) Surpluses cause price ceilings to be imposed.
• C) Neither a price ceiling nor a shortage is the cause of the other.
• D) Federal law states that price ceilings cannot be imposed for longer than a month.

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Definitions:

State Government

The organization through which a state exercises its powers and performs its functions, typically including a legislative, executive, and judiciary branch.

National Government

The governing body that exercises control over an entire country, rather than regional or state authorities.

National Government

The government or political authority that governs a nation, typically responsible for creating and enforcing laws, defense, and foreign policy.

State Government

The government of an individual state within the United States, which operates independently in managing local affairs and responsibilities.