If the Equilibrium Price of Good X Is $4 and a Price

question 56

Multiple Choice

If the equilibrium price of good X is $4 and a price ceiling is imposed at $5, the result will be a(n) :

• A) depletion of inventories.
• B) shortage.
• C) surplus.
• D) equilibrium.

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Definitions:

Defined Benefit Plans

A type of pension plan where the benefits that an employee will receive on retirement are calculated based on factors such as salary history and length of employment.

Defined Contribution Plan

A type of retirement plan where the amount of the employer's annual contribution is specified, with the final benefits received by the employee depending on the investment's performance.

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.

Service Cost

The actuarial present value of benefits earned by employees in the current period under a defined benefit plan, included in pension expense.