A Minimum Permissible Price Established by the Government Is Called

question 112

Multiple Choice

A minimum permissible price established by the government is called

• A)the equilibrium price.
• B)the margin price.
• C)a price ceiling.
• D)a price floor.
• E)the fair price.

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Definitions:

Prices

The financial sum anticipated, obligatory, or presented in exchange for an item.

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and rising prices (inflation).

Economy

The organized system of human activity involved in the production, consumption, and distribution of goods and services in a particular geographic or political area.

Economic Contraction

A decline in national output as measured by GDP, often marked by a decrease in spending, investment, and general economic activity.