A Binding Price Ceiling Results In

question 71

Multiple Choice

A binding price ceiling results in:

• A)inefficiency resulting from overproduction of the good.
• B)inefficiency because transactions are held below the equilibrium quantity.
• C)a decrease in wasted resources,as consumers find such goods more easily.
• D)surpluses in the market,which eventually lead to inefficient production costs.

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Definitions:

Shirking

Working at less than the expected rate of productivity, which reduces output. Shirking is more likely when workers are not monitored, so that the cost of lower output falls on others.

Corporate Business Structure

Corporate business structure refers to the legal organization of a company, often characterized by the issuance of shares, a board of directors, and liability protection for its shareholders.

Productive Contribution

The input or service provided by a factor of production towards the making of goods and services.

Corporate Form

A legal structure for businesses recognized as separate entities from their owners, providing limited liability protection and enabling easier access to capital.