Some economic historians argue that the Interstate Commerce Commission (ICC) was the first case of the "capture" of a federal regulatory commission. What does this mean?
(a) The railroads used the ICC to solve the problems of cartel management.
(b) The users of the railroads—passengers and shippers—influenced the ICC to keep railroad rates high and the quality of those services high.
(c) The railroads used the Commission to keep rates high and keep potential new railroads from entering the business.
(d) Foreign investors high jacked the ICC to protect their railroad investrments.
(a)
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A comparative advantage is the ability of one person or nation to produce a good at an opportunity cost that is lower than that of another person or nation
Indicate whether the statement is true or false
Which of the following statements about the optimal solution to the consumer problem based on the Cobb-Douglas utility function is NOT true?
A) The cross-price elasticities of demand are zero. B) Both goods have downward sloping demand curves. C) Both goods are normal goods. D) The marginal utility of income may be negative.
If we were on curve K, the poorest quintile received about _____% of income.
A. 3
B. 6
C. 13
D. 20
A network externality occurs when
A) the usefulness of a good is affected by celebrities who use the good.
B) there is production cost savings from being networked with buyers.
C) the usefulness of a good is affected by how many other people use the good.
D) there is production cost savings from being networked with suppliers.