Which Action Will Always Result in a Shortage

question 100

Multiple Choice

Which action will always result in a shortage?

• A) when the government imposes a price ceiling below equilibrium price
• B) when the government imposes a price ceiling above equilibrium price
• C) when the government imposes a price floor below equilibrium price
• D) when the government imposes a price floor above equilibrium price

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Definitions:

Risk-Free Asset

An investment with a guaranteed return, without any risk of financial loss.

Positive Rate

An interest rate or yield that is above zero, reflecting a positive return on investment.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.

Actual Return

The real gain or loss that an investment has earned, including dividends, interest, and capital gains, over a specified time period.