An Effective Price Ceiling Is Best Defined as a Price

question 118

Multiple Choice

An effective price ceiling is best defined as a price:

• A) imposed by government below equilibrium price.
• B) imposed by government above equilibrium price.
• C) higher than any consumer is willing to pay.
• D) lower than any supplier is willing to sell.

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Definitions:

Preemption

A legal doctrine that allows federal law to take precedence over state laws in cases where both governments have enacted competing laws or policies.

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory, mainly in areas concerning health, safety, and morals.

General Revenue Sharing

A form of federal monetary aid that is given to states and municipalities with minimal restrictions on how it can be spent.

Means Testing

A procedure to determine eligibility for certain forms of financial aid or social services based on the income and assets of an applicant.