Explain what critics see as the problems with social regulation
What will be an ideal response?
The goals set by the regulators may be uneconomical and not take into account the costs and benefits of the regulation. Some regulations are based on limited or incomplete information about the value of the product or hazards from it. Regulations have unintended side effects because of perverse incentives. In some cases, the regulations have driven business to bankruptcy. The regulations killed the businesses they were designed to regulate. There are also complaints about overzealous personnel who have a social agenda and use the government agency to promote it.
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A decrease in government spending will cause a(n) ________.
A. decrease in aggregate demand B. increase in aggregate demand C. decrease in the quantity of real output demanded D. increase in the quantity of real output demanded
A market demand curve reflects the
A) marginal social benefits of consuming a product. B) sum of private and social benefits of consuming a product. C) marginal private benefits of consuming a product. D) external benefits of consuming a product.
What is the poverty trap?
a. When a person stays in poverty for their entire life b. When there is generational poverty, so children do see a working role model c. When a person loses government assistance equal to their gain in income from working d. When a person cannot find a job in their neighborhood
Which of the following statements is correct? Other things equal:
A. a decline in real output will shift both the transactions demand curve for money and the total money demand curve to the right. B. a decline in the interest rate will shift the asset demand curve for money to the right but leave the total money demand curve unchanged. C. deflation will shift both the transactions demand curve for money and the total money demand curve to the left. D. inflation will shift the transactions demand curve for money to the right but leave the total money demand curve unchanged.