The debate over the efficiency of markets in which products with brand names are sold
a. is framed by the role of regulation in advertising.
b. is likely to be resolved by reference to anecdotal evidence.
c. hinges on whether consumers are rational in their choices.
d. hinges on the effectiveness of advertising that identifies price differences.
c
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Publicly provided health insurance for the poor will
A. lower the price of health care to the non-poor and increase the total amount of health care consumed. B. increase the total amount of health care consumed. C. lower the price of health care to the poor. D. lower the level of health care consumed by the poor.
If the minimum wage law sets a price floor that is below the equilibrium wage in the unskilled labor market, the minimum wage will create a shortage of unskilled labor
Indicate whether the statement is true or false
What do economies of scale, the ownership of essential raw materials, and patents have in common?
A. They are all barriers to entry. B. They all help explain why the long-run average cost curve is U-shaped. C. They all help explain why a monopolist's demand and marginal revenue curves coincide. D. They must all be present before price discrimination can be practiced.
The World Bank's view of the effectiveness of industrial policies in East Asia is that, in general, they
A) hindered growth. B) had little or no effect on growth. C) encouraged growth. D) are the main factor in the success of the East Asian economies.