A natural experiment always has a control group, which is affected by the policy change, and a treatment group, which is not affected by the policy change.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: A natural experiment always has a control group, which is not affected by the policy
change, and a treatment group, which is thought to be affected by the policy change.
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Suppose the market-clearing price of milk is $3.00 per gallon, but the diary industry persuades the government to establish a legally-mandated price support at $4.00 per gallon. The newly legislated price tends to
A) reduce the demand for milk. B) increase the production of milk. C) create a shortage of milk. D) decrease the price of milk products.
The above table depicts prices, quantities, and marginal costs faced by the campus bookstore. At the profit-maximizing level of output, what is the total revenue earned by the store?
A) $12 B) $5 C) $15 D) $6
The Fed changes the reserve requirement sparingly because:
A. very small changes cause very large overall changes to money supply due to the money multiplier. B. it would cause uncertainty for banks and slow their rate of lending. C. sudden changes of such a huge magnitude would have far-reaching, and sometimes undesirable, effects. D. All of these are true.
Brittany decides to save $50 from each paycheck so that she can go on a Spring Break trip with her college roommates. However, when she gets paid this week, she spends all of her money on new clothes. Which of the following insights into human behavior does Brittany exhibit?
a. People are overconfident. b. People care about fairness. c. People are reluctant to change their minds. d. People are inconsistent over time.