An Economic Policy Has a Decent Chance of Working as Intended,if

question 58

Multiple Choice

An economic policy has a decent chance of working as intended,if ________.

• A)the policy causes no change in expectations
• B)if mistaken expectations are not very costly
• C)the rationale behind the policy is well-understood by the public
• D)expectations are formed in the same way by both the public and the policymakers

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Definitions:

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of revenue that exceeds the cost of goods sold.

Net Income

The net income of a company, which is the remaining amount after deducting all costs and taxes from the total revenue.

Sales

The revenue a company earns from selling goods or services in its normal operations.

Operating Expenses

Costs associated with running a business's core operations on a daily basis, excluding costs of goods sold.