Which of the Following Statements Is True About Ratio Scales

question 9

Multiple Choice

Which of the following statements is true about ratio scales?

• A)They do not have equal intervals.
• B)They have an absolute zero point.
• C)They exhibit minimal quantitative distinctions.
• D)They are typically used to measure personality traits.

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Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a commodity or service that is set below the market equilibrium price, causing a shortage.

Binding Price Floor

A government-imposed price control set above the equilibrium price, causing a surplus by forcing the price to be higher than what the market would naturally set.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable, typically resulting from taxes or price controls.

Rent Ceiling

A form of price control where a maximum limit is placed on the rent that can be charged for housing.