Assume a Market Is Producing Efficiently

question 61

Multiple Choice

Assume a market is producing efficiently.Which type of government intervention in this market might create a deadweight loss?
i.a price ceiling
ii.a price floor
iii.a price support

• A) i only
• B) i and ii
• C) iii only
• D) ii and iii
• E) i, ii, and iii

---

Definitions:

Individual Assets

Specific items of property owned by an individual or entity, including tangible and intangible assets.

Straight-line Depreciation

A technique for distributing the expense of a physical asset across its lifespan in uniform yearly sums.

Plant Asset

An asset used in the operations of a business that is not intended for sale to customers and is referred to as property, plant, and equipment (PP&E) in accounting.

Adjusting Journal Entries

Journal entries made at the end of an accounting period to update certain accounts and ensure they accurately reflect the financial status of the business.