When the government eliminates artificial barriers to entry:
A. more firms will enter the market.
B. prices to consumers will likely increase.
C. competition in the market will decrease.
D. All of these will occur.
Answer: A
You might also like to view...
If the United States and other developed nations pay the cost of reducing public emissions, developing nations such as China could benefit from the reduction while not contributing to it In this sense, one can think of reducing carbon emissions as being like a
A) quasi-private good. B) private good. C) quasi-public good. D) public good.
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Which of the following is true regarding this economic model?
a) Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.
b) Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.
c) While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy.
d) Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy.
According to behavioral economists, people's preferences toward a particular outcome:
A. depend heavily on the contextual information that defines whether that outcome is a gain or a loss. B. are context independent because the same state of being is created regardless of one's previous circumstances. C. differ across people but are fixed for any given individual. D. depend primarily on genetics rather than environmental or contextual forces.
Normative economics
What will be an ideal response?