Price Ceilings May Be Used on a Selective Basis to

question 115

Multiple Choice

Price ceilings may be used on a selective basis to

• A)Control inflation in the economy
• B)Make a good cheaper to produce
• C)Boost the income of firms
• D)Make a good accessible to all income levels
• E)Increase workers' incomes

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Definitions:

Constant Growth DDM

The Dividend Discount Model assumes dividends grow at a constant rate indefinitely, used to estimate the value of a company's stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Common Stock

Equities, or equity securities, issued as ownership shares in a publicly held corporation. Shareholders have voting rights and may receive dividends based on their proportionate ownership.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.