Rules of Thumb Are Also Known As

question 178

Multiple Choice

Rules of thumb are also known as:

• A) processes.
• B) self-serving biases.
• C) heuristics.
• D) principles.

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Definitions:

Price Ceilings

Regulatory limits on the maximum price that can be charged for a good or service, intended to protect consumers from extreme prices.

Price Floors

Legislation that sets the minimum price that can be charged for goods and services.

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded, often corresponding to an equilibrium price.

Price Ceiling

A maximum limit set by the government on the price of a good or service, intended to protect consumers.