To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to
a. compete rather than cooperate with each other.
b. collude with each other.
c. form various degrees of cartels.
d. cooperate rather than compete with each other.
Answer: a. compete rather than cooperate with each other.
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Refer to Figure 5-6. What does D1 represent?
A) the demand curve reflecting private benefits B) the demand curve reflecting social benefits C) the social welfare curve D) the positive externalities curve
What most accurately describes the ratio of federal employment of the total labor force between 1910 and 2007?
a. Between 1930 and 1945 the federal labor force grew dramatically, but after World War II it shrank below pre-Depression levels. b. Since 1910, federal employment has increased consistently at the rate of about 3% per year. c. Between 1910 and 1950 federal employment dropped dramatically, but after 1950 it grew consistently. d. The share of federal employment in the total labor force peaked briefly above four percent during the Korean War, and then began a steady decline to about the same level as the 1930s.
Which of the following is generally not a result of increases in productivity per person?
A. increases in per capita income. B. economic growth. C. increases in GDP per capita. D. increase in unemployment.
ISI policies were brought to an end primarily by
A) their inability to solve the crises of the 1980s. B) authoritarian governments interested in total control over the economy. C) populist politicians. D) protests by consumers.