Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)A non-binding price floor results in excess supply.
• B)A binding price floor results in excess supply.
• C)A binding price floor results in excess demand.
• D)A non-binding price floor results in excess demand.
• E)None of the above statements are true.

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Definitions:

Reliability

The consistency and stability of a measurement over multiple trials or observations.

Construct Validity

The degree to which an assessment or tool accurately gauges the theoretical idea or construct it aims to assess.

Error Score

The difference between the observed score and the true score.

True Score

The true score in measurement theory is the actual score that perfectly reflects the corresponding attribute or quantity without any measurement error.