The major goal of social regulation is
A. to make sure that prices are kept low enough so that every person can purchase the good.
B. to make sure that the firm produces at the socially optimal point of production.
C. to make sure that firms are not earning monopoly profits.
D. a better quality of life through a less polluted environment, better working conditions, and safer and better products.
Answer: D
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OPEC periodically meets to agree to restrict the cartel's oil output, and yet almost every member of OPEC produces more than its own output quota. This suggests that OPEC has
A) a threat of substitute goods. B) a noncooperative equilibrium. C) new potential entrants. D) a cooperative equilibrium.
In the circular flow model, for every flow of goods, services, and resources there is a counter-flow of
a. more goods, services, and resources b. people from firms to households c. people from households to firms d. money e. land, labor, capital, and entrepreneurship
Poor people, who receive income assistance from the government, often do not work because
a. they face very high implicit marginal tax rates. b. they are usually not physically able to work. c. they have no desire for additional money. d. the government forces them to stay at home and take care of their children.
When an employer pays the cost of educating a worker, it is likely that the employer
a. is demonstrating altruistic motives. b. is pursuing some objective other than profit-maximization. c. hopes to recapture its investment in the form of increased labor productivity. d. receives reimbursement from the government for the cost of the education.