The market in Figure 15.1 produces:
A. the efficient amount of the good.
B. less than the social optimum quantity.
C. more than the social optimum quantity.
D. the right amount of the good.
Answer: B
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Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good) to increase?
A) a drought that sharply reduces cotton output B) an increase in consumer income C) a decrease in consumer income D) unusually good weather that results in a bumper crop of cotton
________ imposes a conceptual structure and inherent discipline on policy makers, but without eliminating all flexibility
A) Constrained discretion B) A policy rule C) A discretionary policy D) The Taylor rule
A good example of _________ is the merger between a steel firm and a cookware firm
a. a horizontal merger b. a vertical merger c. a conglomerate merger d. either a horizontal or conglomerate merger, depending on whether the oligopoly is balanced or unbalanced e. either a horizontal or conglomerate merger, depending on the market shares of the two firms
Under the Toxic Substances Control Act (TSCA)
a. a registration procedure is used to control the introduction of new chemical substances b. manufacturers are required to notify the government of a new chemical by the day it is introduced into commerce c. producers must notify the government 90 days before they plan to produce a new chemical d. the EPA has one year to evaluate the risks and respond to a manufacturer’s premanufacture notice (PMN) of a new chemical