Effective Price Ceilings Cause Misallocation of Resources Because Scarce Resources

question 140

True/False

Effective price ceilings cause misallocation of resources because scarce resources are usually not allocated to their highest-value uses.

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Definitions:

Note Receivable

A financial asset representing a written promise to receive a certain amount of money at a future date or on demand.

Petty Cash

A small amount of cash kept on hand in a business for minor, routine expenses, managed through a system involving vouchers.

Petty Cash Receipt

A petty cash receipt is a document used to record small cash payments for minor expenses, part of a system to manage incidental or minor office costs.