Many economists believe that when the federal government establishes an agency to regulate a particular industry, the regulated firms try to influence the agency even if these actions do not benefit the public
Economists refer to this result of government regulation by which of the following terms?
A) special-interest regulation B) regulatory capture
C) the regulatory paradox D) logrolling
B
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Suppose that a long-run adjustment in a perfectly competitive industry results in decreased industry output but leaves price unchanged. Which of the following must be true?
a. The market demand curve did not shift b. The market demand curve shifted left; the market supply curve shifted right c. The market supply curve shifted left; the market demand curve shifted right d. Both market supply and demand increased, but supply increased more than demand e. The industry is a constant-cost industry
The short run is the time period during which
a. all of the firm's costs are fixed. b. the value of the firm's assets starts to decay. c. the firm can adjust all inputs freely. d. some of the firm's input decisions are constrained by previous commitments.
Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of
A. an economic loss. B. marginal cost. C. an inefficient cost. D. opportunity cost.
A ________ line is a perfectly price elastic demand curve.
A. negatively sloped B. vertical C. positively sloped D. horizontal