Policy-Oriented Economists Seek to Develop Theories to

question 6

Multiple Choice

Policy-oriented economists seek to develop theories to

• A)explain how things work, so policies can be formulated.
• B)describe what happened in a particular time period in history.
• C)describe current economic events.
• D)find correlations between events.
• E)change people's values and ethics.

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Definitions:

Arbitrage

The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms to take advantage of differing prices for the same asset.

Price Discrimination

A pricing strategy where different prices are charged to different consumers for the same product or service, often based on their willingness to pay.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, often based on their willingness to pay.