Policies Such as Rent Control and Trade Barriers Persist in Spite

question 479

Multiple Choice

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

• A)economists have not yet convinced the general public that the policies are undesirable.
• B)economists engage in positive analysis, not normative analysis.
• C)economists have values that are different from the values of most non-economists.
• D)economists' theories are not easily confirmed or refuted in laboratory analysis.

---

Definitions:

Liquidity

Liquidity describes the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Time Horizon

The length of time over which an investment is expected to be held before it is liquidated.

Risk Tolerance

An investor's capacity and willingness to endure market volatility and bear potential financial losses.

Return Requirements

The minimum expected rate of return on an investment, dictating the level of risk investors are willing to accept.