Which Statement About Price Ceilings Is Correct

question 49

Multiple Choice

Which statement about price ceilings is correct?

• A) Whether a price ceiling is placed below or above the equilibrium price, it will always cause deadweight loss.
• B) A price ceiling will only cause deadweight loss if it is placed above the equilibrium price.
• C) A price ceiling will only cause deadweight loss if it is placed below the equilibrium price.
• D) Whether a price ceiling is placed below or above the equilibrium price, it will always cause a shortage of the good.

Grasp the concept of payback methods and their limitations.

Understand the rationale behind mutually exclusive projects and how to select between them.

Comprehend the impact of the cost of capital on project valuation.

Understand the concept of capital rationing and its theoretical aspects.

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Definitions:

Genes

Units of heredity made up of DNA that encode for the synthesis of proteins, influencing various traits and characteristics of an organism.

DNA

DNA, a molecule responsible for carrying the genetic blueprints essential for the growth, development, functioning, and reproduction of every known living being.

Chromosomes

Structures within cells that contain DNA and carry genetic information, with humans typically having 23 pairs.

Lateralization

The propensity of particular cognitive functions or neural activities to be more pronounced in one hemisphere of the brain than in its counterpart.