One reason that some criticized government price regulations was ______________, where the regulated ended up playing a large role in setting the regulations that were intended to control them.
a. regulatory capture
b. regulation apprehension
c. legal backtreading
d. government abandonment
a. regulatory capture
One difficulty with government price regulation is what economists call regulatory capture, in which the firms supposedly being regulated end up playing a large role in setting the regulations that they will follow.
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Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?
A) purchases of corporate stock B) inventory investment C) fixed investment D) spending on capital goods
In the short run, if a firm shuts down its maximum loss equals the amount of its fixed cost
Indicate whether the statement is true or false
A government's budget deficit is equal to
A) the change in the value of bonds issued plus the change in the money supply. B) the change in the value of bonds issued minus the change in the money supply. C) the change in the money supply minus the change in the value of bonds issued. D) either the change in the value of bonds issued or the change in the money supply.
A public good or service can be consumed by paying and nonpaying customers alike
a. True b. False Indicate whether the statement is true or false