The capture hypothesis suggests that
A. the firms being regulated will unduly influence the regulators.
B. marginal cost regulation is superior to average cost regulation.
C. regulation will lead to over-entry and eventual losses for firms in the industry.
D. the well-focused interests of consumers will lead to the over-regulation of most industries.
Answer: A
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An increase in bond prices is usually accompanied by
A. an increase in the opportunity cost of holding money. B. an increase in the quantity demanded of money C. a decrease in the quantity demanded of money. D. an increase in interest rates.
Describe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different times?
What will be an ideal response?
When the housing market bubble burst, many people found that:
A. they owed more than their house was now worth. B. it was much easier to sell their home. C. the value of their homes exceeded their mortgage loans. D. there was a limited number of houses for sale.
An increase in the price of metal raises the cost of manufacturing dishwashers. As a result, the market changes to a new equilibrium because of
a. a surplus of dishwashers. b. an increase in the demand for dishwashers. c. a leftward shift in the demand curve for dishwashers. d. a leftward shift in the supply curve for dishwashers.