Suppose a Government Imposes a Binding Price Ceiling on a Good

question 60

Multiple Choice

Suppose a government imposes a binding price ceiling on a good. Which of the following groups is most likely to favor the price ceiling?

• A)People having a low opportunity cost of time
• B)People having high hourly wages and salaries
• C)People having a low propensity to consume
• D)People having a high propensity to invest
• E)People supplying the good in the market

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Definitions:

Compounded Semiannually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.

Compounded Annually

Interest calculation method where the interest earned is added to the principal at the end of each year, then the new total earns interest.

Check Register

A record of all transactions in a checking account, including checks written, deposits made, fees paid, ATM withdrawals, and so on.

Bank Statement

A statement that includes all transactions that have occurred for a period of approximately one month.