"Regulations do not always have the intended result." Do you agree or disagree? Why?
What will be an ideal response?
Agree. Firms often try to avoid the effects of regulation. Firms engage in creative response, which is a response to a regulation that conforms to the letter of the law but undermines its spirit. Further, individuals may alter their behavior in ways that run counter to the goals of the regulation. For example, people may drive less carefully in safer cars, causing as many injuries as when the cars were less safe.
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Most economists - both liberals and conservatives - believe a balanced budget amendment is an ill-conceived idea.
A. True B. False C. Uncertain
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 20%. b. The euro appreciated by 25% and the dollar depreciated by 25%. c. The euro depreciated by 25% and the dollar appreciated by 25%. d. The euro appreciated by 20% and the dollar depreciated by 25%. e. The euro depreciated by 20% and the dollar appreciated by 20%.
A liberal economist would never recommend that policy makers cut union wages.
Answer the following statement true (T) or false (F)
A direct exchange of fish for corn is an example of:
A. storing value. B. a modern exchange method. C. barter. D. a non-coincidence of wants.