Price Ceilings Set Below the Equilibrium Create

question 19

Multiple Choice

Price ceilings set below the equilibrium create:

• A) externalities.
• B) unemployment.
• C) shortages.
• D) surpluses.

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Definitions:

Lorenz Curve

A diagrammatic representation that exhibits how wealth or income is distributed among people in a society, underscoring the existing inequalities.

Gini Ratio

A scale measuring the degree of income difference among people in a demographic, with 0 symbolizing perfect equity and 1 symbolizing utter inequity.

Greater Inequality

A situation characterized by a wider disparity in income, wealth, opportunities, and other socioeconomic indicators among individuals or groups within a society.

Gini Ratios

Measures of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).