Which One of the Following Statements Is TRUE

question 290

Multiple Choice

Which one of the following statements is TRUE?

• A) An effective price ceiling results in a surplus of the good.
• B) An effective price floor results in a shortage of the good.
• C) When the market clearing price of a good is the equilibrium, then everyone can afford it.
• D) The market clearing price of a good reflects its relative scarcity.

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Definitions:

Degrees of Freedom

A statistical concept that defines the number of independent pieces of information in a dataset used in parameter estimates.

Population Variances

The measurement of how much the numbers in a specific population are spread out from their mean.

Test Statistic

A value calculated from sample data that is used in hypothesis testing to determine whether to reject the null hypothesis.

Confidence Interval

An interval of figures obtained from statistics of a sample, expected to include the value of a hidden population parameter.