Economic theory is necessary and extremely important because of its relationship to economic policy
a. True
b. False
Indicate whether the statement is true or false
True
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A merger between McDonald's and Burger King would be called a(n)
a. horizontal merger b. vertical merger c. conglomerate merger d. cartel e. illustration of game theory
Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,
a. the demand curve for physicals shifts to the right. b. the supply curve for physicals shifts to the left. c. the quantity demanded of physicals increases and the quantity supplied of physicals decreases. d. the number of physicals performed will increase.
Which of the following is a plausible solution to a distortion?
A. Imposing a tax or subsidy on the activity if the social marginal cost or the social marginal benefit exceeds the market price B. Shutting down any industry which is contributing to atmospheric pollution C. Imposing an importation ban on manufactured goods D. Centralizing the privately owned enterprises
Following the financial crisis in 2008, the Federal government passed the ________, to prevent future financial crises by making major changes to the US financial system.
A. FDIC Improvement Act. B. Troubled Asset Relief Program. C. Dodd-Frank Act. D. Glass-Steagall Act.