Price Controls Cause Resources to Be ________ Not Just Geographically

question 116

Multiple Choice

Price controls cause resources to be ________ not just geographically, but also across different ________ of those resources.

• A) overutilized; types
• B) properly allocated; demands
• C) cheaper; uses
• D) misallocated; uses

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Definitions:

Fundamental Analysis

A systematic process in which a security is valued by estimating the performance of the underlying company and the future cash flows associated with owning the security. These are discounted to arrive at an intrinsic value for the security.

Future Cash Flows

Projected cash transactions that are expected to occur as part of future operations of a business.

Fundamental Analysis

An investment analysis approach that evaluates a security's intrinsic value by examining related economic and financial factors.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including all aspects of the business.