Which Is Not an Effect of a Price Floor

question 278

Multiple Choice

Which is not an effect of a price floor?

• A) misallocation of resources
• B) deregulation
• C) surpluses
• D) wasteful increases in quality

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Definitions:

Cognitive Heuristic

Mental shortcuts or rules of thumb that simplify decision making, often leading to a quick but potentially inexact conclusion.

Representativeness

A cognitive heuristic in which an individual categorizes a situation based on how similar it is to a typical case from that category.

Anchoring

A cognitive bias in decision-making and information-processing where an initial piece of information serves as a reference point for judgments and decisions that follow.

Memory Retrieval Routes

The processes and pathways by which stored information is recalled from the brain.