The Major Drawback of a Price Ceiling Is

question 89

Multiple Choice

The major drawback of a price ceiling is

• A)it causes a surplus.
• B)government regulations of this kind are difficult to enforce.
• C)it causes a shortage.
• D)There is no drawback.

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Definitions:

Protest Movements

Collective efforts of individuals or groups to express opposition to, or demand changes in, political, social, economic, or environmental issues.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression, which sought to encourage industrial growth and improve labor conditions.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States.