Figure 9.4.1 -Refer to Figure 9.4.1 Above. Suppose the Government Raises the Raises

question 27

Multiple Choice

Figure 9.4.1
-Refer to Figure 9.4.1 above. Suppose the government raises the price of cheese above the market equilibrium level (P₀) by imposing a high minimum price and purchasing all of the excess supply from the market, and these quantities are destroyed. Based on the areas in the figure below, what is the cost of this program to the government?

• A) Government expenditures are area E+F+G.
• B) Government expenditures are area B+C+D.
• C) Government expenditures are area D.
• D) Government expenditures are area B+C+D+E+F+G.

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Definitions:

Horns Error

A bias in performance appraisals where a person is judged based on a single negative trait, impacting the overall assessment negatively.

Behaviorally Anchored Rating Scale

is a performance appraisal method that uses specific descriptions of employee behaviors to rate performance on a scale, providing a more objective and concrete evaluation.

Likert Scale

A psychometric scale commonly used in questionnaires to gauge attitudes or responses, where participants indicate their level of agreement with a statement along a linear scale.

Contrast Error

An error in performance appraisals where an employee's evaluation is based on a comparison with another employee rather than on individual performance criteria.