Using anti-trust law to break up a monopoly
a. will increase economic efficiency
b. makes sense if the market would function well under competitive conditions
c. makes sense if the monopoly resulted from network externalities
d. makes sense if the monopoly resulted from a patent or copyright
e. would increase producer surplus
B
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From the 1960s to the early 1990s, marginal tax rates _____
a. varied, but not in a consistent direction b. steadily declined c. steadily increased d. remained relatively constant
Environmentalists, politicians, and economists have different perspectives on what constitutes appropriate environmental policy. Which of the following statements was probably made by an economist?
A. “We take the position that there are rights involved here, rights to be protected from threats to your health, regardless of the costs involved.” B. “Protecting the environment is so important that standards cannot be too high, and continuing improvements must be made regardless of cost.” C. “Pollution is a moral issue that cannot be reduced to dollars and cents.” D. “Clean air and water are things we can buy-if the price is right.”
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
In the figure above, if the market is unregulated, the output will be
A) zero. B) 50 units. C) 150 units. D) 250 units.