A Consequence of Either a Price Ceiling or a Price

question 59

Multiple Choice

A consequence of either a price ceiling or a price floor is

• A) a market surplus.
• B) an unwanted market allocation.
• C) a market shortage.
• D) better organization of resource allocation,resulting in more efficiency.
• E) Price floors and price ceilings cannot have an identical outcome.

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Definitions:

APR

Annual Percentage Rate, which shows the cost of credit on a yearly basis expressed as a percentage.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, on a monthly basis.

Deposit

A sum of money placed in a bank account or paid as the first installment on a purchase, establishing a right to the full ownership or to secure a contract.

Birthday Money

A non-formal term usually referring to money received as a gift on one's birthday.