Read the Paragraph Below and Answer the Questions That Follow

question 29

Multiple Choice

Read the paragraph below and answer the questions that follow.
(1) When it comes to cleanliness, homeowners seem to fall into one of three categories. (2) The first group includes the spotless perfectionists. (3) These people would be horrified if anyone walked into their home and found even one speck of dirt, so they are constantly cleaning. (4) Everything they own is always in its place and dust-free. (5) The second group of homeowners is the complete opposite. (6) They are the slobs. (7) Visit their houses, and you will see dirty clothes and empty cans and pizza boxes strewn about. (8) Every available surface will be covered with stuff that looks like it belongs somewhere else, and the floor will be in need of some serious mopping. (9) The third group falls somewhere in the middle between these two extremes. (10) They tend to keep clutter at bay, and they probably clean house about once a week. (11) You might see a fine layer of dust or a dirty dish or two, but otherwise, the house is relatively tidy.
On what basis does the writer classify homeowners?

• A) size of home
• B) income of homeowner
• C) cleanliness of home

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Definitions:

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the total benefit to society.

Collusive Oligopoly

A market structure where a few firms dominating the market agree to set prices or output levels, reducing competition and maximizing collective profits.

Limit Pricing

A strategy where a firm sets the price of its products low enough to discourage new competitors from entering the market.

Price Leadership

A strategy where a leading firm sets prices that other firms in the market follow.