The total costs of regulation
A) include increased taxes and increased prices of the products being regulated.
B) are paid entirely by the regulated industries.
C) are much higher than just the explicit government outlays to fund the administration of various regulations.
D) are paid entirely by the consumers of regulated industries.
C
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Why does a firm in perfect competition produce the quantity at which marginal cost equals price?
What will be an ideal response?
If the market price of gasoline were $4 a gallon and a ceiling price of $1.50 is imposed,
a. a surplus of gasoline occurs. b. a shortage of gasoline occurs. c. the price of gasoline would remain unchanged. d. the price of gasoline would increase.
Explain two concepts of central bank independence. Is the Fed politically independent? Why do economists think central bank independence is important?
What will be an ideal response?
The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________
A) to avoid the bankruptcy of the issuing firms B) to manage expectations C) to prevent such firms from being acquired by foreign companies D) to stimulate spending by firms and households