When Policymakers Impose Price Controls, They

question 115

Multiple Choice

When policymakers impose price controls, they

• A) are usually following the advice of mainstream economists.
• B) usually improve the efficiency of economic activity.
• C) distort the signals that normally guide the allocation of resources.
• D) demonstrate a willingness to sacrifice equity in order to improve efficiency.

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Definitions:

B.F. Skinner's View

The perspective of psychologist B.F. Skinner that emphasizes the importance of reinforcement and punishment in shaping behavior, known as behaviorism.

Reinforcement

In behavioral psychology, a concept where a behavior is strengthened or increased by following it with a positive stimulus or removing a negative one.

Overextension

The act of using a word, on the basis of some shared feature, to apply to a broader range of objects than is appropriate.

Rehearsal Techniques

Methods or practices used to enhance memory retention, such as repeating information or practicing skills.