Policies Such as Rent Control and Trade Barriers Persist in Spite

question 479

Multiple Choice

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

• A)economists have not yet convinced the general public that the policies are undesirable.
• B)economists engage in positive analysis, not normative analysis.
• C)economists have values that are different from the values of most non-economists.
• D)economists' theories are not easily confirmed or refuted in laboratory analysis.

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Definitions:

Nonprofit Organizations

Nonprofit Organizations are entities that operate for the collective, public, or social benefit, rather than to generate profit for owners or investors.

Federal Funds

The reserve balances that commercial banks hold at their regional Federal Reserve Bank, often lent overnight to other banks to help meet reserve requirements.

Functional Competition

Refers to competition among businesses that offer different goods or services that meet the same customer need or desire.

Direct Competition

Businesses or products that target the same customers and satisfy the same needs.