When Studying the Effects of Public Policy Changes, What Do

question 79

Multiple Choice

When studying the effects of public policy changes, what do economists do?

• A) They often falsify results if the desired effect is not reached.
• B) They may make different assumptions for the long run and the short run.
• C) They attempt to consider only the direct effects and not the indirect effects.
• D) They can immediately change policies if they are ineffective.

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Definitions:

Antitrust Laws

Legislation aimed at preventing anti-competitive practices, monopolies, and to ensure fair competition in an open-market economy.

Swipe Fees

Charges that a merchant pays to a card-issuing bank for processing credit or debit card transactions.

Regulatory Forces

External forces including laws, regulations, and government actions that influence or restrict business operations, often in the interest of public safety or fair competition.

Competitive Pressures

The influence exerted by competing businesses in the same industry, which drives companies to improve products, services, and operations.