When Price Controls Take the Form of Maximum Prices Set

question 94

Multiple Choice

When price controls take the form of maximum prices set below the equilibrium price,they are:

• A)illegal.
• B)equal to the demand price.
• C)price floors.
• D)price ceilings.

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Definitions:

Luchins

Refers to a series of experiments or the psychologist, Abraham Luchins, famous for his work on mental set and problem solving.

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of situational factors when observing others' behaviors.

Attributions

Explanations for the causes of events or behaviors, often as internal (personal) or external (situational) factors.

Behavior

The actions or reactions of an organism or system, usually in relation to its environment.