Why do supporters of social regulation need to remember that “there is no free lunch”?
What will be an ideal response?
The economic effects from regulation are generally negative. They result in higher prices for consumers, tend to reduce innovation because of fear of not meeting a guideline or rule, and they can reduce competition because only well-financed firms may be able to comply with a regulation.
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Which of the following groups had the highest median income in the U.S. in 2008?
A. Hispanic B. White (non-Hispanic) C. Asian D. Black
Which of the following statements about the Euro's exchange rates with Sterling and the U.S. Dollar is true?
(a) The Euro is above parity with both Sterling and the Dollar; (b) The Euro is below parity with the Dollar and above parity with Sterling; (c) The Euro is below parity with Sterling and above parity with the Dollar; (d) The Euro is below parity with both Sterling and the Dollar.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, the amount bought by domestic consumers when there is open trade for this good is:
A. 1150 B. 250. C. 1500. D. 500.
On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are
A. diverging more from the incomes of rich countries. B. maintaining a constant gap with the incomes of richer countries. C. crossing the line representing richer countries. D. coming closer to the line representing richer countries.