A Price Floor Usually Results in a _____ Misallocation of Resources

question 170

Multiple Choice

A price floor usually results in a _____ misallocation of resources.

• A) shortage and a
• B) surplus and a
• C) shortage and no
• D) surplus and no

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Definitions:

Systematic Risk

It represents the risk inherent to the entire market or market segment, often influenced by factors such as economic, political, or social changes.

Treasury Bills

Short-term government securities issued at a discount from the par value and paying no interest, maturing in one year or less, representing a secure, liquid investment.

Market Index Fund

A type of mutual fund or ETF designed to replicate the performance of a specific market index.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's level of risk compared to the market average.