Which of the Following Is a Prominent Argument Against the Use

question 4

Multiple Choice

Which of the following is a prominent argument against the use of price floors?

• A) Non-price rationing must occur and can lead to consumers waiting for goods or services.
• B) The cost to taxpayers will increase if the government buys all surplus.
• C) Producers will reduce the quality of the goods they sell.
• D) Price floors transfer surplus from producers to consumers.

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Definitions:

Sales Journal

A specialized journal used to record all sales of merchandise on credit, organizing transactions systematically for accounting purposes.

Cash Receipts Journal

A financial journal that records all cash inflows to the business, including sales, loan proceeds, and investment income.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.

Accounts Receivable

Unpaid amounts by customers to a company for goods or services already rendered.