Antitrust issues can be political firestorms. In order to accomplish their economic missions regarding monopolies, regulation, and antitrust policy without incurring the scrutiny of the press and public, many presidents choose to
a. ignore the issue
b. adopt the rule of reason
c. adopt the per se rule
d. manipulate the budgets of enforcement agencies
e. promote policies outlined in the Clayton Act
D
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The table above gives the cost schedule for The X Firm. The data show that The X Firm's ________ curve is ________
A) ATC; U-shaped because the firm fixed costs are spread over larger amounts of output and the firm experiences decreasing marginal returns B) AFC; U-shaped because the firm spreads its fixed costs over larger and large amounts of output C) AVC; always declining because costs are divided across ever-increasing amounts of output D) MC; U-shaped because explicit costs exceed implicit costs E) ATC; U-shaped because output increases as costs increase
The presence of a privately-owned monopoly helps:
A. the monopolist. B. consumers. C. society overall. D. government.
The cheap foreign labor argument is a poor reason for restricting international trade because
a. the labor productivity of workers who are paid less is lower than the labor productivity of those who are paid more b. all firms and workers gain when there are no restrictions on international trade c. infant industries such as steel and automobiles need to be protected d. specialization and free trade usually raise the prices of all traded goods, so that the workers are paid more e. long run labor costs tend to be the same worldwide because of workers' mobility
If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall. B) the money supply will decrease, interest rates will fall and GDP will fall. C) the money supply will increase, interest rates will rise and GDP will rise. D) the money supply will increase, interest rates will fall and GDP will rise.