Government Intervention in the Form of Price Floors or Price

question 121

Multiple Choice

Government intervention in the form of price floors or price ceilings will:

• A)always enhance the efficiency of the market.
• B)result in either surpluses or shortages.
• C)move the market toward its equilibrium quantity more quickly.
• D)often be seen as necessary to decrease the existence of black markets.

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Definitions:

Red Herring

A prospectus for the sale of a security not yet approved by the SEC. Stamped with the word preliminary in red letters.

Commerce Department

A department of the federal government dedicated to promoting economic growth, supporting business, and managing trade.

Maturity Matching

A financial strategy that involves matching the duration of assets and liabilities to mitigate risk.

Financing

The act of supplying capital for enterprise operations, acquisitions, or investment purposes.