Which One of the Following Statements Is False

question 48

Multiple Choice

Which one of the following statements is false?

• A)An effective minimum wage sets the wage rate above the equilibrium wage rate.
• B)An effective rent ceiling sets the rent below the equilibrium rent.
• C)An effective rent ceiling leads to a housing shortage.
• D)An effective minimum wage is inefficient.
• E)A minimum wage is a price ceiling in the labour market.

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Definitions:

Equity Financing

Equity financing is the process of raising capital through the sale of shares in an entity, giving investors ownership interests in the company.

Average Collection Period

The average number of days it takes for a company to collect its accounts receivable after a sale has been made.

Credit Terms

Conditions under which credit will be extended to a borrower, including repayment terms, interest rates, and due dates.

Emphasis on Collections

A focus or prioritization on the process of obtaining payments from customers or clients for goods or services provided.