When Price Ceilings Are Effective, Gains from Trade Are Usually

question 233

True/False

When price ceilings are effective, gains from trade are usually lower than if the available goods are allocated to the highest value uses.

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Definitions:

Conversion

The unauthorized assumption and exercise of the right of ownership over personal property belonging to another, altering its condition or title.

Bailment

A contractual agreement in which the physical control of an item of personal property is handed over from one individual to another, with an agreement that the item will be returned.

Gift Causa Mortis

A gift that is given by someone in anticipation of imminent death, which becomes effective only if the donor dies as anticipated.

Contemplation of Death

A legal concept often used in estate planning, referring to actions made with the awareness that one's death is imminent, especially in the context of gifting property.