In a Market Economy, Which of the Following Would Most

question 167

Multiple Choice

In a market economy, which of the following would most likely cause a prolonged grain surplus?

• A) a decrease in the demand for grain
• B) an increase in the supply of grain
• C) imposition of a price floor above the equilibrium price of grain
• D) imposition of a price ceiling below the equilibrium price of grain

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Definitions:

Ownership Equity

The owners' residual interest in the assets of a company after deducting liabilities, also known as shareholders' equity or stockholders' equity.

Date of Record

The specific date set by a corporation on which the company determines the shareholders eligible to receive dividends or other distributions.

Stock Split

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.