Which of the following is NOT a reason for the government to regulate a nonmonopolistic industry?
A) to allow firms to achieve the profit maximizing output
B) asymmetric information
C) to protect consumer interests
D) market failures
A
You might also like to view...
If the marginal social benefit of a city's sewage system is less than the marginal social cost, then the city will achieve an efficient use of resources if it ________
A) decreases the capacity of the sewage system B) does not change the capacity of the sewage system C) increases the capacity of the sewage system D) increases the sewerage charge that the residents pay
Classical economists
a. argued that the money supply determined aggregate demand. b. regarded monetary policy as unimportant since the quantity of money does not determine the price level. c. believed that the quantity of money influences interest rates and real wages. d. believed that prices would increase more than proportionate to an increase in the money supply.
Which of the following did not contribute to the U.S. banking collapse of 1929-1933?
a. The Federal Reserve System and other government agencies did not act quickly or decisively enough b. Deposit insurance did not exist at that time. c. The banking industry consisted of only a few very large banks. d. The fact that the economy was in a continuous downward spiral during this period undermined depositors' confidence in the solvency of the banks.
Define the following terms briefly and concisely and indicate their importance to the study of economics. a. Entrepreneurship b. Investment c. Capital d. Innovation e. Discounting
What will be an ideal response?