Which Statement Is the Best Explanation for Why Policies Such

question 52

Multiple Choice

Which statement is the best explanation for why policies such as rent control and import quotas persist in spite of the fact that experts are united in their opposition to such policies?

• A) Economists have not yet convinced the general public that the policies are undesirable.
• B) Economists are simply wrong about the economic impact of these policies.
• C) Economists have different values than do most people.
• D) Economists are usually of a different political party than are lawmakers.

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Definitions:

Registrar

is an organization or entity responsible for keeping records of bondholders and shareholders for companies and financial institutions.

Default Risk Premium

The portion of a nominal interest rate or bond yield that represents compensation for the possibility of default.

Inflation Premium

The extra yield on an investment that investors require as compensation for the loss of purchasing power due to inflation.

Bond Payments

The regular interest payments made to bondholders, as well as the return of principal at the bond's maturity date.