A Good Example of a Price Floor Is

question 41

Multiple Choice

A good example of a price floor is:

• A) rent controls on apartments in major cities.
• B) general admission tickets to concerts.
• C) the minimum wage law.
• D) food stamp regulations.

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Definitions:

Fixed Expense

Fixed expense refers to costs that do not fluctuate with the level of goods or services produced by the business, such as rent, salaries, and insurance.

Borrowing Risk

The potential danger that borrowers might not be able to repay their loans or meet other financial obligations, leading to financial loss for the lender.

Accrued Interest

Interest that has been incurred but not yet paid at the end of a period.

Adjusting Entry

An accounting record made to update the financial statements to reflect transactions that have occurred but are not yet recorded.