In Order for a Price Floor to Be Binding, It

question 71

Multiple Choice

In order for a price floor to be binding, it must be set _______ the equilibrium price, and it will likely cause _______.

• A) above; a shortage
• B) below; a shortage
• C) above; excess supply
• D) below; excess supply

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Definitions:

Total Quality Management (TQM)

A management strategy aimed at embedding awareness of quality in all organizational processes, seeking continuous improvement.

Pareto Analysis

A decision-making tool that uses the principle that 80% of effects come from 20% of causes to prioritize actions or problem-solving efforts.

Flow Chart

A graphical representation of a process or system showing the sequence of steps or operations using symbols and arrows.

Control System

Mechanisms or procedures implemented to guide activities towards achieving organizational objectives, often through monitoring and feedback.