One Reacts to ________ Power Out of Fear of the Negative

question 37

Multiple Choice

One reacts to ________ power out of fear of the negative ramifications that might result if one fails to comply.

• A)knowledge
• B)influence
• C)persuasive
• D)coercive

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Definitions:

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing properties, aimed at making housing more affordable.

Inefficiently Low Quality

A form of inefficiency in which sellers offer low-quality goods at a low price even though buyers would prefer a higher quality at a higher price; often a result of a price ceiling.

Allocation

The process of distributing resources or goods among different uses, users, or parties in a way that optimally meets criteria or objectives.

Mandated Price

A price set by government regulation or law, rather than determined by market forces of supply and demand.