Economic regulation of business is justified if, by intervening, government can
a. improve the allocation of resources in society
b. create economic rents for special interest groups
c. reduce output and increase prices for an industry
d. increase tax revenue from the regulated industry
e. force firms to increase their costs of production
A
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Mortgage-backed securities are groups of mortgages that are bundled together and sold to investors
Indicate whether the statement is true or false
Import quotas have a negative impact on poor nations because they make it difficult for poor nations to
A. Sell agricultural goods to each other. B. Develop a pro-business environment. C. Sell agricultural goods to rich nations. D. Receive foreign aid from rich nations.
The problem of economic scarcity applies
A) only in industrially developed countries because resources are scarce. B) only in underdeveloped countries because there are no productive resources. C) only in economic systems that are just beginning to develop because specialized resources are scarce. D) to all economic systems, regardless of their level of development.
A market is said to be in equilibrium when
A. The buying intentions of all consumers are realized. B. The supply intentions of all sellers are realized. C. The quantity demanded equals the quantity supplied. D. Demand is fully satisfied at all alternative prices.