The Time It Takes for the Policy Actually to Have

question 6

Multiple Choice

The time it takes for the policy actually to have an impact on the economy is called

• A)the data lag.
• B)the recognition lag.
• C)the legislative lag.
• D)the implementation lag.
• E)the effectiveness lag.

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Definitions:

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Pricing

The process of determining the value that will be charged for goods or services.

Packaging

The materials and methods used to protect and present goods for distribution, sale, and use.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic or decision.