The social interest theory of regulation is defined as the
A) use of regulations to maximize firms' profits.
B) use of regulations to assure an efficient use of resources.
C) removal of regulations on business activities.
D) implementation and removal of regulations on the cable TV industry.
E) use of rate of return regulation.
B
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All of the following are factors that will shift the demand curve except
A) a change in the price of complementary products. B) a change in the price of substitute products. C) a change in income. D) a change in the price of inputs.
Refer to Figure 10.7. A movement from point C to point B could be caused by
A) an increase in consumer confidence accompanied by a decrease in the target interest rate. B) a decrease in consumer confidence accompanied by an increase in the expected rate of inflation. C) a negative demand shock accompanied by an increase in the term structure effect. D) a positive demand shock accompanied by a decrease in the default-risk premium.
Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries b. the opportunity costs are unequal for all the goods they produce c. their production possibilities curves are unequal d. they had a history of mutual retaliation e. their resources were of different qualities
In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and good for society?
a. Two guilty criminals have been captured by the police, and each prisoner decides whether to confess or to remain silent. b. Two airlines dominate air travel between City A and City B, and each airline decides whether to charge a "high" airfare or a "low" airfare. c. Two duopoly firms account for all of the production in a market, and each firm decides whether to produce a "high" amount of output or a "low" amount of output. d. Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.