The Major Drawback of a Price Ceiling Is

question 9

Multiple Choice

The major drawback of a price ceiling is:

• A) it causes a surplus.
• B) government regulations of this kind are difficult to enforce.
• C) it causes a shortage.
• D) none of the above; there is no drawback.

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Definitions:

International Preferred Accounting Practices

Best practice accounting principles that are widely accepted and used by companies across different countries.

IASB

The International Accounting Standards Board, an independent organization responsible for developing and issuing International Financial Reporting Standards (IFRS) used globally for financial reporting.

AICPA

American Institute of Certified Public Accountants, a national professional organization for certified public accountants in the United States.

Ethics

Principles that govern a person's behavior or the conducting of an activity, often acting as a guideline for moral conduct.