A Policy's Direct Effect Includes___________

question 3

Multiple Choice

A policy's direct effect includes___________.

• A) The effects of a policy on third parties
• B) Changes in market prices resulting from a policy
• C) Changes in behavior in people directly affected by policy
• D) Includes all of the effects from a policy including the spillovers

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Definitions:

Mental Set

A psychological tendency to approach situations in a certain way due to past experiences and perceptions, which can sometimes hinder problem-solving.

Mental Image

A mental representation that mirrors or resembles the thing it represents; mental images occur in many and perhaps all sensory modalities.

Sensory Modalities

Different forms of sensory perceptions, such as sight, sound, touch, taste, and smell, through which we experience the world.

Cognitive Schema

A mental framework that helps organize and interpret information in the world around us.