Many economists agree that government should deal with monopolists on a case-by-case basis. Policy options include the following, except:
A. If the monopoly is attained and maintained through anticompetitive behavior, the government can file a suit based on antitrust laws
B. If the firm is a natural monopoly, the government may decide to regulate its prices and operations
C. If the monopoly is maximizing economic profits, the government should subsidize new firms to enter the industry
D. If the monopoly is subject, and vulnerable, to potential competition, the government can decide to leave it alone
C. If the monopoly is maximizing economic profits, the government should subsidize new firms to enter the industry
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What are the payments each factor of production receives?
What will be an ideal response?
The government's health plan for the elderly is called
a. Medicaid. b. Medicare. c. Social Security. d. food stamps.
Borrowing is like:
A. buying the right to use your money for a time. B. buying the right to use someone else's money. C. selling the right to use your money for a time. D. selling the right to use someone else's money.
What role does ideology play in the debate on stabilization?
A. A large role because there are conservative and liberal economists. B. A primary role because there are no economic aspects to the debate at all. C. A minor role because economists are fairly uniform in their political views. D. No role at all because this is purely a technical question.