If a Price Ceiling Results in the Price Not Being

question 73

Multiple Choice

If a price ceiling results in the price not being used to allocate a scarce resource or good, then

• A) something other than price must allocate the scarce good.
• B) the price will have to decline.
• C) the market will take over.
• D) the government will be more efficient than any other mechanism.
• E) a random allocation will be more efficient than any other mechanism.

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Definitions:

Trust Instrument

A legal document that creates a trust, specifying the terms, trustees, beneficiaries, and purpose.

Trust's Purpose

The specific objectives or intentions for which a trust is established, guiding how the trust's assets are to be managed and used.

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.

Legal Title

The formal right of ownership of property, recognized and protected by law, which may not necessarily entail the possession or use of the property.