A Predictable Result of the Imposition of Binding Price Floors

question 44

Multiple Choice

A predictable result of the imposition of binding price floors or price ceilings is

• A)shortages.
• B)a reduction in quantities exchanged.
• C)surpluses.
• D)production control by the government.
• E)a more equitable distribution of commodities.

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, often based on race, age, or gender.

Subtyping

Subtyping is a cognitive process where individuals adjust their stereotypes by creating subcategories for group members who do not fit the prevalent group stereotypes.

Stereotyping

The act of categorizing individuals into specific groups based on generalized beliefs, which may not accurately reflect reality.

Prejudice

Preconceived opinions or attitudes towards people or groups without factual basis or actual experience.