Reference: Ref 8-5 (Figure: Costs of Price Ceilings) Refer to the Figure

question 167

Multiple Choice

Reference: Ref 8-5 (Figure: Costs of Price Ceilings) Refer to the figure. What is the dollar amount of the value of wasted time if a price ceiling of $4 is implemented?

• A) $160
• B) $180
• C) $320
• D) $220

---

Definitions:

Serial Correlation

The relationship between sequential data points in a time series, indicating that a value in the series is statistically correlated with its predecessors.

Mutual Funds

Investment funds that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Hedge Funds

Private investment funds that use a range of strategies to achieve returns, including diversification, leveraging, and derivatives.

Treynor Measure

A performance metric for determining how well an investment portfolio compensates the investor for taking risk, relative to the market as a whole.