Answer the following statements true (T) or false (F)
1. According to the legal cartel theory of regulation, firms desire to have government regulation because it protects them from competition.
2. Most economists conclude that deregulation has reduced prices and led to more competition in deregulated industries.
3. Social regulation consists of regulating the behavior of people in society in order to promote the safety and harmony in neighborhoods.
4. One good example of a government agency involved mainly in social regulation is the Food and Drug Administration.
5. Supporters of social regulation contend that it has provided net benefits to society in the form of greater safety, a better environment, and less discrimination.
1. T
2. T
3. F
4. T
5. T
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Describe the debt-deflation process
What will be an ideal response?
The lowest-income fifth of the U.S. population ordinarily earns about 20 percent of the income.
Answer the following statement true (T) or false (F)
Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will increase output ________ in Alpha compared to Beta, holding other factors constant.
A. more B. not at all C. less D. by the same amount
A carbon tax placed on coal would:
A. raise the costs of goods produced using coal, raising their price, and thus decreasing the quantity demanded of these goods. B. not affect emissions of greenhouse gases. C. shift the demand curve for coal to the right. D. make coal a more attractive form of energy.