Impeding Price Signals by Imposing Price Ceilings Can Have Serious

question 97

Multiple Choice

Impeding price signals by imposing price ceilings can have serious consequences. Which of the following is such a consequence?

• A) improved product quality
• B) gains from trade
• C) surpluses
• D) misallocation of resources

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Definitions:

Financing Section

A part of financial statements that includes activities related to issuing debt, repayment of debt, issuing equity, and paying dividends.

Cash Outflow

Pertains to the movement of money out of a business, primarily through expenses, payments to creditors, or investments, leading to a decrease in cash balance.

Financing Activity

Involves transactions related to a business's funding, including obtaining or repaying capital, issuing shares, and paying dividends.

Investing Activities

Financial transactions related to the purchase and selling of long-term assets and other investments not considered as cash equivalents.