The capture theory of regulation is defined as
A) the use of regulations to assure the efficient use of resources.
B) the constant reapplication of regulation on the cable TV industry.
C) the use of regulation to assist producers to maximize profits.
D) the removal of regulations on business activities.
E) regulation that focuses on consumers' interests and ignores producers' interests.
C
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Refer to Figure 2-4. A movement from ________ could occur because of an influx of immigrant labor
A) W to X B) X to Y C) X to W D) W to V
One way to overcome the problem of adverse selection in labor markets is to
a. use signaling and screening b. advertise job openings widely c. contract out the hiring function d. pay above average wages e. pay below average wages
When investment funds are allocated by government rather than by markets,
a. profitable investments are more likely to take place. b. political influence replaces market return as the basis for allocating funds. c. funds will consistently be channeled into wealth-creating projects. d. projects that are political boondoggles will be unlikely to be undertaken.
The price of borrowing is known as the:
A. equilibrium price. B. transaction cost. C. interest rate. D. None of these is true.