Let's Say That You Have a Friend Who Was Caught

question 111

Multiple Choice

Let's say that you have a friend who was caught illegally selling a good on the black market.When the judge asks you to describe your friend's motivation as a seller,which of the following would most likely be your reply?

• A) My friend sold the good on the black market because a binding price floor had created a shortage in the legal market and my friend was performing a public service by making the good available.
• B) My friend sold the good on the black market because a non-binding price ceiling caused the price to be lower on the black market.
• C) My friend sold the good on the black market because a non-binding price floor had created a shortage in the legal market and my friend was performing a public service by making the good available.
• D) My friend sold the good on the black market because a non-binding price floor made the good too expensive to purchase in the legal market and it was cheaper on the black market.
• E) My friend sold the good on the black market because a binding price floor resulted in a surplus of the product in the legal market and he needed to get rid of the surplus.

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations or observations.

Psychological Test

A standardized measure of a sample of behavior used to assess psychological constructs such as cognitive abilities, personality traits, or emotional states.

Consistency

The quality of always behaving or performing in a similar way, or of always producing the same results.

Validity

The extent to which a test or instrument measures what it claims to measure.