Because a Price Floor Causes

question 102

Multiple Choice

Because a price floor causes:

• A) a shortage, some form of rationing must occur.
• B) a surplus, some producers may ultimately lose because they won't have enough customers.
• C) a shortage, rent-seeking will occur.
• D) a surplus, everyone will be better off.

Identify and apply the principles of probability in calculating expected outcomes in financial contexts.

Analyze scenarios with multiple outcomes and probabilities to determine the expected value.

Understand the definition and role of a random variable in determining outcomes.

Evaluate investment opportunities based on their success probabilities and resulting value.

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Definitions:

Macroeconomics

The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, including issues like economic growth, inflation, and unemployment.

Normative Statements

Statements that express value judgments or opinions about what ought to be rather than statements of fact.

Positive Theories

Positive theories attempt to describe how the world is, focusing on factual statements and cause-effect relationships without prescribing what actions should be taken.

Congressional Budget Office

The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.