If the Intended Aim of the Price Floor Set at $12

question 118

Multiple Choice

If the intended aim of the price floor set at $12, as shown in the graph, was a net increase in the well-being of producers, then positive analysis would consider the policy to be:

• A) effective if area C is larger than area E.
• B) effective if areas E + B are larger than areas C + D + F.
• C) ineffective if area B is larger than area E.
• D) ineffective if areas E + B are larger than areas A + C + D + F.

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Definitions:

Metacognition

The self-recognition and comprehension of one's cognitive activities, commonly described as "contemplating one's own thoughts."

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Rehearsal

A cognitive process in which information is repeated over and over as a possible way of learning and remembering it.

Metacognition

Awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."