A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is
a. a patent.
b. impossible to enforce.
c. an antitrust law.
d. an externality law.
c
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If recessions are in large part the consequence of coordination failures,
A) government must direct or control private spending to reduce instability. B) stability cannot be achieved without the use of discretionary fiscal policy. C) stability cannot be achieved without the use of discretionary monetary policy. D) the economy is unlikely to respond smoothly and predictably to shifts in government policy.
A barter economy
A) cannot be a market economy. B) is an economy without monetary exchange. C) is an economy with no business firms. D) is not a competitive economy.
Suppose you know a piece of land will be worth $1 million (real) in 2045, and the real interest rate is 5%. About how much should you be willing to pay for the land today (2015)? (Assume no taxes)
a. $610,000 b. $1 million c. $1.89 million d. $230,000
The Coase theorem implies that an efficient solution is possible only if property rights are well-defined and transactions costs are low
a. True b. False Indicate whether the statement is true or false